Early debt consolidation can save credit rating

Posted 2007-10-7

Director General of the Council of Mortgage Lenders (CML), Michael Coogan, has suggested that efforts taken to improve individual’s credit rating can quickly result in Britons being looked at more favourably by lenders.

“If you face payment difficulties, please speak to your lender before you miss a payment. Now is the time for consumers to look to improve their credit status to keep their borrowing costs as low as possible,” he suggested.

CML also asserted that a growing number of secured home loans are being obtained for purposes other than a house purchase.

The Insolvency Practitioners Association has observed that a debt consolidation - to lessen the over-all amount necessary to repay - could prove to be a good reason to take out a secured loan.

Wayne Harrison, a spokesperson for the organisation, recently observed that by proving to lenders that individuals are committed to repaying their debts, Brits can improve their over-all credit rating. 

Most importantly, it is imperative to consider debt consolidation before feelings of peril set-in, and certainly before debts grow to an insurmountable amount. The added stress of worrying over finances does nothing to resolve them, and can often create adverse health conditions. Taking control of finances, on the other hand, will salvage not only an individual’s peace of mind, but also their credit rating in general.

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