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Better Than Debt Consolidation

et out of debt with a 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
and http://www.premierrealestate.co.uk offer a
personal and courteous service, and treat every
case on an individual basis.
About the Author
Martin Parker is founder and Director of Rent
Back Investments Ltd (RBI )
http://www.rentback.org