How would you consolidate your debts?
So number one, I would say to you, if you’ve got any type of debt issues, you probably want to make sure you get your assets cleared up and get them tied up and consolidated. Now, consolidation is quite a complex word for some people don’t even understand really practically what it means. Consolidate actually means to develop an approach to stop doing what you’re doing and just look at what you do have and actually simplify all those things into getting them structured in a way that you’re more efficient.
So stop audit and streamline is what I’d say consolidation means. So that’s one of the first things I think a lot of people need to start doing now, especially if they want to start taking advantage of the current market space. I think we’re going to have a huge glitch in the property market, a potential fall in that fall, there’s an opportunity for people that are prepared and your preparation will probably give you a huge benefit because you can get a huge return on your preparation, because when the assets do fall in price, if you’ve got the right strategy in place, you could be picking up assets that are very good price or picking up particular types of deals in business which are going to suit your profile. So the first thing you need to do is really look at the potential of actually consolidating all your debts. So debt settlement is critical!
The second thing you need to do is to possibly reduce your exposure risk by going into fixed rates where possible.
The problem with fixed rates is that they only last for two to three years or five years and you have to refinance again, which is a lot of hassle. So that’s number two, number three is that if you’ve got credit cards, you want to consolidate and reduce the debt down or pay it off or come up. Ideally, what you want to do is with credit cards. You want to negotiate the debt out. Ideally, if you can do it for five P in the pound or ten P in the pound.
So your debt is 10,000, you can negotiate with the companies to pay them £500 or £1000. Just like that! They’ll take it. So there are ways of actually consolidating your debt down altogether that will actually then help you repair your credit report. Then in turn, once you’ve got clean credit report, you can go out there and then you can find it’ll be easier to refinance any assets.