If you are under administration and need a loan. Take this advice. There are ways to get finance in this position. But first you need to understand your situation. And the options available to you.
“An administration order is a valuable option to protect and assist consumers to repay their debts orderly and affordably. And enable them to re-enter the economy with dignity on discharge.” (www.trevenna.net)
Your financial affairs are placed in the hands of a debt administrator in this situation. The administrator receives your income. Then after deducting an amount to cover your living expenses, pays the rest to your creditors. The administrator can charge a maximum of 12.5% of the amount paid to creditors.
As you can imagine, loan providers do not look kindly on this type of person to lend money to. Banks provide loans in the form of “personal loans”.
However, any bad credit rating, or black listing. Which includes being under administration or being blacklisted, will prevent you from applying at the major registered banks.
These institutions all do strict credit and employment checks. And generally only lend money to people when it can be proved they can pay it back.
If you are under administration you may feel forced to approach more back street lenders for a loan. These lenders either act as go-betweens to the more regulated companies, or they provide lenders with an unsecure loan.
This means that no checks are run on the applicant. In terms of employment or credit history.
There are companies offering unsecured loans on the Internet. And all attract fairly high interest rates.
Under Administration Loan Scams
Be careful when applying for this type of loan. As scams are common here due to the often unsuspecting nature of the applicant. As well as the lack of face-to-face interaction of the online application process.
However, if you are under administration, you probably need to take a long and honest view as to how you got into this situation in the first place.
The economic climate is incredibly tough to survive in. But borrowing money is one of the most sure-fire ways to get yourself into more financial trouble.
They say, “If you can’t afford it now, do not finance it, as you won’t be able to afford that either.”
Taking out a loan, especially one through a loan shark is unwise. It’s a dangerous option when under administration.
Rather discuss your options with your debt administrator. Or with a debt counsellor. You can work out something that will work for you, without getting further into debt.
Taking out a loan while under administration is a possibility. Although one that comes with high interest and risk. You need to decide whether the loan is really worth it.