Posted by nick_niesen on November 8th Shareef Miller Hoodie , 2010

Secured bad credit loans were seen with a bit of contempt in times gone by. Now they make complete sense, and we should be glad. Official UK figures indicate why!

According to CreditAction.org 'At the end of December 2005 the total UK personal debt was £1,158bn. Total secured lending on homes in December 2005 was £965.2bn. This has increased 10.4% in the last twelve months.' This is while the average British consumer debt is £7,786, and that is not taking into account mortgages.

Average household borrowing through credit cards JJ Arcega-Whiteside Hoodie , vehicle and shopping finance deals has increased five times in five years. Yet the typical house price in the UK in November 2005 stood at £186,431 (source: Office of DPM).

The figures speak for themselves. The much higher rates of interest payable on credit cards, auto and retail finance (store cards etc.) take a huge chunk out of the typical person's monthly earnings. The single sensible way forward is quite obvious. Consumers need to convert the high interest credit into lower interest credit by using their property by way of security. Even if people's credit standing is quite poor it makes even more sense to pay off the same amount of money at a smaller rate of interest by means of a secured bad credit loan.

Now new lending sources are springing up which consider all circumstances. This latest market for secured bad credit loans has grown up in the last decade or so, and it has developed outside of the mainstay of the High Street lenders. As long as people have property then they can borrow as much money as they want to pay off existing borrowing. Nor do intelligent consumers have to pay the exorbitant rates of interest that used to be the case with people whose credit standing was not the best.

Would it not make more sense to pay £60 a month in servicing that debt than £150 a month servicing exactly the same debt? Secured bad credit loans offer that opportunity.

Improvements in financial credit management assessment mean that loans providers are readily prepared to take into account secured bad credit loans where these were untenable in the past. The self-employed, in particular Miles Sanders Hoodie , are not treated as they were, especially with the new approach towards self-certification. Three years of audited accounts are no longer automatically required from people who want to work for themselves. People with County Court Judgements, Individual Voluntary Arrangements, people who have reneged on past or current finance agreements and even discharged bankrupts are now usually considered in today's changing world of finance.

Increasingly consumers are taking larger financial risks, especially those in commerce and the entrepreneurial minded. The secured bad credit loans marketplace is expanding to take account of that because it has to. Of course Andre Dillard Hoodie , borrowers should never consider secured loans where they are not totally sure they are able to make the repayments. Those people should take a look at unsecured financial products (which are more expensive).

But, as CreditAction.org states, the average value of a house in the United Kingdom is '£186,431 (£195,319 in England). United Kingdom yearly house price inflation rose by 2.5 per cent. Annual house price inflation in London was 2.2 %.' Putting all that money to good use by taking out a secured credit loan is an option most borrowers should look at Brian Dawkins Shirt , whatever their credit status.

"Subject To" real estate financing is fairly new on the real estate investing scene, mainly because many investors don't know what it is.

"Subject To" financing actually can be a win-win situation for both the seller and the buyerinvestor if both parties understand their obligations to one another. The seller usually gets to sell hisher property at the asking price which was originally sought, and the buyerinvestor usually gets the property with very little money down, if any, while not having to qualify for any bank loans.

We know Alshon Jeffery Shirt , that traditional real estate investing is mainly about buying low and selling high, and making a profit from that difference, usually over time. There's absolutely no secret to that. While doing it this way, of course, you would incur all the paperwork and everything else that goes along with buying and selling a home like paying all the transaction fees that are involved like commissions Jordan Hicks Shirt , closing costs, title, recording fees and of course your time. On an average, the whole process usually takes a month and a half up to six months depending on the situation.

Creative financing, or "other than" traditional andor conventional real estate investing Nelson Agholor Shirt , is basically working out an agreement that is fair both the seller and the buyer, without using banks or mortgage brokers. By incorporating this type of financing, the sellers can sell their property for the price they want, and in a timely fashion. The buyerinvestor can create an environment for himher to profit in some manner over a period of time.

By leaving out the usual suspects like title companies, real estate agents and loan officers Sidney Jones Shirt , both parties stand to make the transaction more profitable for the buyerinvestor and more cost effective for the sellers. Specifically this can be real profitable for the real estate investor because in any type of investing, and especially in real estate, it's about leverage. The leverage is what makes creative financing a powerful, profit-making tool for those looking to start a real estate investing business. The leverage is usually represented by how much money you put into a certain investment, and how much you make from that amount over time. "Subject To" deals make your leverage extremely high Derek Barnett Shirt , since most of the time you place a small amount of cash, for usually a much lager return.

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