Free Equity Release - A Simple Way of Reducing Debt

Free equity release is a plan which helps to restructure your loan. It is a fairly simple way of tackling any unsecured debt that you have. It also helps to free up some cash which can be used for other purposes, such as for a holiday or for retirement.

Basically, if you are drowning in debt with your bank, it is likely that the terms of your loan will not allow you to settle for a payment that fits your budget. You may not even be able to cover your basic needs or meet your own demands. Even if you do get a reduction, you will not be able to afford the financial burden. It is then important to look for free equity release options, as this can help you carry out the purpose that you need without having to settle for a lower repayment.

A free equity release option should not be confused with debt settlement, where you pay a fixed amount as a single lump sum. This option does not require you to pay anything upfront. The period of time between the start of the repayment process and the ending one varies from lender to lender.

There are two options available under free equity release. In the first one, the loan taker does not repay the whole amount; rather, he or she pays a partial amount which covers a specific period.

The second free equity release is easier to apply for. As it is, you get the full amount without having to pay back anything at all. In addition, it is often possible to opt for shorter repayment periods.

Under the free equity release plan, the whole point is to negotiate with your lender and get a lower monthly repayment. If you were unable to do so before, the process has become much easier now. Lenders realize that they will not get back the full amount that they lent until a considerable time has passed, so they are ready to work out a new payment plan which should prove beneficial for all parties concerned.

What this plan is intended to do is help you to be able to reduce the outstanding loan. It is done by restructuring the loan so that it makes sense to repay it. You are allowed to pay a very small amount each month while keeping the whole amount paid in.

You should note that the free equity release plan will not help you save the money that you will have been paying towards the payment of the loan. It is possible to avail of both of these methods, which means that you do not need to save anything. This can be useful in the case where you have got a high-interest loan.

This way, you will be able to increase your income and thus save the money. On the other hand, you can use the credit card and use the cash that you have saved to pay off the debt. This is a good alternative if you are the type of person who likes to save money and spend only on necessities.

Another good thing about the free equity release plan is that it can help you improve your credit score as well. Any time that you are having problems with a loan, you can apply for free equity release and have your loan restructured. This will make your credit report look healthier, which in turn will help to boost your credit rating.

This option is easily available and can be managed by anyone, even those who do not have the experience of dealing with loans. The right company will provide you with all the necessary details that you need. Furthermore, you do not have to know any special codes or legal jargon.

A word of warning though - make sure that you are not being pressured into signing apaper before considering free equity release. In most cases, it is better to choose a free equity release plan over a debt settlement because it is not worth your time to continue the battle that you will lose.