Consolidation Loan – Housing Boom

If you are in debt and own a property, a consolidation loan could help.

Debt has gripped the UK economy and more of us than ever before owe more money than ever. If you are a homeowner you could find a way out - consolidation loans or remortgaging are ways of managing uncontrollable debts.

Homeowner confidence

Property experts have said that no matter how high interest rates go, or whether we face another recession the housing market has traditionally doubled in price every ten years. This means despite the ups and downs of the economy, if you own a property, it’s usually a good investment. This is why more people are releasing equity from their homes or using them to secure consolidation loans to clear their debt.

Borrower boom

One of the reasons we have more debt isn’t simply because we are being careless with money but because consumers have generally been optimistic thanks to a housing market boom and cheap borrowing. But an unfortunate twist of fate could leave you struggling with debt, and a consolidation loan could be a way out. You could be vulnerable if:

• You are a victim of job losses
• There is  recession which could hit the housing market
• You are tempted to take out too high a mortgage and can’t keep up payments because of a lull in finances
• Your personal life such as bereavement or divorce impacts on your employment

Consolidation loan for homeowners

However if you have a property, the chances are you can use this to borrow money - such as a consolidation loan - to help with temporary financial lulls. Interest rates are still reasonably low for borrowers, which is good news. It’s thought that mortgages swallow about a third of people’s salaries – higher than ever – your property is probably the biggest investment you have. As long as the housing market continues to go from strength to strength a consolidation loan or remortgaging could be a way of solving your current debts.

Housing market

If people feel richer, they tend to spend and borrow more. And the strength of the housing market has made many in the UK feel rich. One survey revealed that although debt has increased by 112%, house prices have gone up by 141%, creating consumer confidence. As long as the housing market stays strong, consolidation loans and remortgaging are a viable option.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/index.htm

Debt Consolidation Loan

If you are thinking of taking out a Secured Homeowner Loan, you would be well advised to ensure that you fully research differing Debt Consolidation companies before going ahead with Debt Consolidation.

If you have heard that a Debt Consolidation Loan may be the answer to all your current debt problems then you are probably in the situation of trying to find as much information as possible about a Debt Consolidation Loan. If this is the case then you may well benefit from reading our basics to Debt Consolidation Loans, outlined below.

Debt Consolidation Loan – The Basics

What is a Debt Consolidation Loan? A Debt Consolidation Loan is when you arrange to put all your debts together into one single manageable monthly re-payment. Debt consolidation companies help you achieve this by contacting all your creditors and making arrangements with them on your behalf, which will usually result in lower interest rates. As a consequence of this you will then only have to pay off the debt consolidation loan once a month, at a reduced interest rate and for a fixed term. This means that you will be paying lower interest rates than with separate re-payment installments and that you know exactly how long it will be before you pay off your debt. A Debt Consolidation Loan may also provide you with an opportunity to repair your credit rating, allowing you a greater future credit flexibility, with a reduced interest rate.

Debt Consolidation Loan – The Options

There are many more different types of debt consolidation loan than you might think, for example you can use the equity within your house to consolidate the debt. However, most people are faced with two basic options when undertaking debt consolidation. One option involves a debt consolidation program that, for a fee, will negotiate with the creditors in obtaining an interest rate reduction, thus reducing your overall debt and allowing it to be re-paid quicker. The other option also involves the re-negotiation of interest rates but also includes taking out a debt consolidation loan to pay off the creditors. You will then only have to pay off one lender.

Debt Consolidation Loan – The Best time

Many people ask when the best time is to take out a debt consolidation loan. The answer is not necessarily clear cut. However, if you feel as though you are constantly drowning in your attempt to repay your debts then a debt consolidation loan might be the answer. It is important that you have reached a stage within your debt that you are prepared to make a significant commitment in paying the debts off. You need to be sure that you are at a stage where you can make a monthly re-payment and that you are prepared to possibly use your house as collateral. A debt consolidation loan is not something to be undertaken lightly, without the right kind of financial advice.

Long Term Offshore investments

A long-term offshore investment strategy is important if you want to prepare for retirement or plan for other investments. To find out more visit https://www.offshoreinvestmentguide.com/default.aspx

Most financial advisors recommend a diversified portfolio, which will give you income and returns that cover both your medium- and long-term requirements. There are plenty of long-term investment opportunities available offshore, but you must be sure that they are both the type of investment and the length of investment that you are happy with.

If you’re looking for tax-efficient, long-term investments, or you are likely to be working overseas for an extended period, you should talk to a financial advisor about long-term offshore investments. With an extended range of products from countries across the world offering various categories of risk and return, you can invest in any number of funds or financial products with a long-term goal in mind.

Retirement

A financially-comfortable retirement is something that most people aspire to. For many, saving for retirement comes too late and results in far less income or capital than they wanted. If you plan far enough ahead, however, and take advantage of good financial products, you can realise significant returns that can help you become financially independent just when you need to. At deVere, we can help you with:

• General retirement planning
• Setting long-term goals
• Assessment of current retirement arrangements
• Researching and recommending long-term products
• Monitoring progress and changing funds where appropriate

Research suggests that most people aren’t saving nearly enough for a good retirement. We are living longer and we therefore need to ensure that we will have enough capital and income for at least 20 years in retirement.

General investment

Whether you are saving for a special purchase in the future, for children’s university fees or to provide an income for a spouse or other family member, long-term offshore investment can help you to make the returns you need. From low-risk, guaranteed return funds to much higher-risk strategies, you can have an offshore investment portfolio that will generate cash in the long-term.

Offshore investment advice

Why do you need offshore investment advice?

Unlike the UK’s financial market, where nearly all financial products are fully regulated, offshore investments and their regulations vary from country to country. A single investor can’t keep up with changes in the way these products are managed or overseen, or with the ways in which local factors such as the economy and unemployment can affect each market. So, if you’re serious about offshore investments, you need to take professional advice. To find out more visit http://en.wikipedia.org/wiki/Offshore_investment

What can professional advice give me?

• Access to more products – an experience financial advisor will have an excellent knowledge of the offshore market and, as at deVere & Partners, have the backing of a large, specialist organisation. This means that you are more likely to find a suitable product and a better deal than you would if you were trying to access funds on your own.

• More options – once your advisor understands your aims and objectives, they may be able to offer options that you haven’t previously considered – either because you don’t have enough information or because you’re unaware of the product. Extending your options means that you can be a more flexible and successful investor.

• Market knowledge – a qualified and trained financial advisor needs to be aware of changes in the marketplace, including external factors which may affect the products he or she advises on. Their up-to-date market knowledge and their anticipation of funds that may change or be subject to damaging external factors is essential to ensuring that you are making the best choices.

• Confidentiality – the professional advisors at deVere know that you want your finances to be treated with sensitivity and discretion and that you need to be able to trust your advisor with running your offshore investments. Confidence in your advisor inspires confidence in their recommendations and a good long-term relationship can be very profitable for clients.

• Communication – when you arrange your financial investments yourself, it’s easy to sit back, congratulate yourself on finding a good product and let the fund take its course. A financial advisor, on the other hand, will always be checking to ensure that the product is still the best one for you, and getting in touch if they find something else that may bring better returns. This means that your finances are always working their hardest for you.

Offshore investment the Ethical Way

For some investors, it’s very important to ensure that the offshore investments being made on their behalf are ethical. Low risk investments like high growth timber investments are good for investors and the environment.

Every investor is different. Their goals are different, they have different amounts to invest and they choose to invest in different things. For some, the nature of the fund and the way it operates is just as important as the potential returns.

Why choose ethical offshore investments?

Offshore investments, by their nature, are managed from a wide range of countries around the world. Regulation of financial products, including the areas in which they invest, varies from country to country. Whilst many investors are happy to choose the fund that fits in with their financial plans, others want to be sure that they are comfortable with the sectors the fund invests in, and how the fund itself is managed.

How do I find out if my offshore fund is ethically-run?

Before you commit to any offshore fund, ask your advisor some key questions. These will help you to determine whether the fund meets your ethical requirements. Questions could include:

• What sector(s) does this fund invest in?
• Is the financial reporting clear and open?
• Does the fund comply with any specific environmental regulation?
• Are investors made fully aware of all the risks?
• Is the fund likely to invest in unethical sectors in the future?

Your financial advisor will be able to help with these questions so that you can decide whether or not you want to continue with the investment.

What counts as an unethical investment?

Whether an investment is unethical or not is largely down to your own personal opinion. Examples of investments that are commonly seen as unethical are:

• Arms manufacture or supply
• Animal testing
• Pornography
• Tobacco
• Nuclear power
• Human embryo research
• Exploitation of developing countries

You can talk your concerns through with your advisor, who will be able to add notes to your records to show that you do not want to be associated with certain types of investment, offshore or otherwise. You can also specify the types of investment that you would like to be involved with.

Debt Management and Negative Equity Worry for Thousands

According to a report on the BBC, the debt management problems of thousands of homeowners could be set to worsen amidst reports that the threat of negative equity is likely to affect large numbers who recently secured mortgages. To find out more visit http://www.debtmanagementtips.co.uk/

The financial picture in the UK is particularly bleak and it is of little surprise that Gordon Brown’s popularity has sunk to new lows as reports filter through that some 23,200 people who took out mortgages in the year to 31^st March are faced with the very real possibility of negative equity. This is likely to result in significant debt management problems for the thousands of affected homeowners as the values of their properties plummet and they continue to struggle to service their mortgage repayments. The housing market crash is, of course, just one aspect of the debt management predicament that the UK faces. The myriad of financial fallouts from the credit crunch is creating carnage for the debt management plans of homeowners and consumers alike.

Debt Management - Housing Disparities

The debt management nightmare that results from negative equity is as a result of the plummeting house prices meaning that the value of a house is no longer equal to the amount taken out in a mortgage. According to the report on the BBC, the negative equity problem is most troublesome for those who cannot afford their mortgage repayments as it leaves them in a very problematic debt management situation. Speaking to the BBC, Michael Saunders of Citigroup, sounded an ominous warning and stated, “House prices are down 6% in just the last five months, and the worst of the credit crisis - all that still lies ahead.” This news will certainly be unwelcome to those who are already suffering from debt management problems.

Debt Management - Tackling the Problem

In terms of what can be done to tackle debt management problems, increasing numbers of homeowners and consumers are discovering that schemes such as a debt consolidation loan can help them significantly when it comes to getting their finances back on track. One of the primary reasons people experience debt problems is the difficulty they have keeping track of multiple arrears which is why many will seek professional debt management advice from financial experts during 2008.