Get out of debt with our rent back scheme

Debt consolidation is one form of debt management which has become popular and has been widely promoted as a solution to everyone’s money problems. Getting out of debt can be easier and cheaper by raising funds on your property than by taking out an unsecured loan. If you are a home owner it can seem attractive to consolidate your debt by paying off your debts with one loan, however the only problem with this is that you still owe money and will probably start spending again thus increasing your overall debt even further. Interest rates can be high as you may have damaged your credit rating. Bad credit loans can be a very expensive option, which seems so unfair as you are trying to get out of debt!

Rent Back

A good solution to the credit card nightmare is a scheme called Rent Back. By selling your property and renting back from the purchaser at a market rate you can stay in your home, with no need to move your family or change schools. You will be able to pay off your debts and live as you were before your debts spiralled out of control.

You will become a tenant, usually with a six month agreement and the new purchaser will become your landlord.

Rent Free

You may also be eligible for a payment holiday, which means that you may have a rent free period of up-to six months before your rent payments are due. The payment holiday will be deducted from the equity in your house as will your debts. The equity in your property will probably have increased if you have lived there for several years as house prices have moved upward. If you bought your house over five years ago and have not increased your mortgage significantly in that time you will have a good equity level in your home which will be released to clear down your debts. The purchasers solicitor may contact all of your debtors including your credit card companies and banks in order to pay off all outstanding debt. You will then be in a position to spend any additional funds as you wish.

Improve your credit score

This form of debt relief can also help improve your credit rating as you will have proven that you have been able to repay your loans and credit cards. Having a good credit score can be a real boost to your moral if you have been in a position of debt. You will find that having no money worries can dramatically improve your state of health and greatly reduce your stress levels.

Selling your house and renting back should be quick and painless process, all your legal fees are paid and all the paper work will be done for you. Your mortgage payments will be converted into rent payments and a new direct debit will be set up. You may even have some extra cash available to treat yourself to a holiday or a better car! Premier Real Estate at http://www.Rent-Back.org offer a personal and courteous service, and treat every case on an individual basis

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