Loan Packager Expands Service To Debt Management
Over the course of the past few years, many individuals in the UK have built up a significant level of personal debt through things such as credit cards, personal loans and other finance agreements.
This can be extremely expensive on the regular monthly repayments and difficult to manage all the separate payments throughout the month. As a result, many people in this situation have applied for a debt consolidation loan to combine all their other card and loan debts into one regular repayment, usually saving a significant amount of money on the regular monthly payments, particularly if they opt for a secured loan.
But over the last few months, many borrowers have found it increasingly difficult to be accepted for even a secured loan to solve their problems, possibly due to having a less than perfect credit history and the majority of lenders tightening their criteria for loan applicants. In this situation, many borrowers will not consider further action to remedy the problem, choosing instead to try and keep up with managing their existing debts, often getting themselves into a worse situation than they were in previously.
To attempt to solve this problem and help borrowers further, Loan Options, a secured loan packaging company who deal exclusively with loan brokers and intermediaries, has extended its service to customers who have been rejected for a traditional secured loan, by introducing a free debt referral service, through their partner company TCF Debt Solutions.
Andy Moody of Loan Options said “Consolidation of debt has been the standard weapon of choice for most intermediaries faced with clients wishing to reduce their outgoings on credit cards and other debt. However, the lack of appetite for this type of borrowing, allied to lower LTV’s and the fall in house values, means that we need to offer intermediaries and their clients realistic alternatives.
It is logical that intermediaries should have the option of referring at risk clients to a service designed to offer long term advice on managing debt effectively and avoiding bankruptcy. Treating customers fairly by ensuring that they have access to all the choices to meet their needs is what every intermediary will be offered at Loan Options.”
