Money Management Guide

A CCJ can be issued to a resident in the UK when an individual is taken to court after failing to pay money owed to a creditor. Once you have a CCJ on your record it will usually stay there for 6 years causing problems if you are looking to borrow money.
Most regular banks aren’t willing to give a loan to those with CCJs, meaning if you want credit your going to have to do some work to find a suitable lender. CCJs have a big impact on your credit rating which a high street bank will check before giving you any cash, CCJ lending companies have appeared over the last few years to provide a service to those who can no longer turn to the banks.
If you are a home owner your best option may be to take a secured loan out against your property. Of course, you’ll have to pay a higher interest rate than an individual who has a good credit rating to compensate the lender due to the fact that you are a higher risk customer.
With a huge range of secured loan lenders in the UK you are advised to shop around for the best deal. You’ll find that the amount you can borrow will depend on the equity you have in your property although some lenders will allow you to borrow more than others, and of course the interest rate applied can vary greatly.
Taking out a secured loan to get you over tough financial times may sound like the answer to your prayers but there are disadvantages that you should be aware of. There’s evidence that many people are getting into trouble after being coerced into taking out loans which they can’t afford. The number of people whose house is in danger because they can’t keep up with repayments is rising sharply, a problem exacerbated by the current global economic situation.
Think carefully before taking out a credit product that is secured against your home, ensure that the loan is essential and find unsecured personal loans if possible to keep your home safe.