Personal Loans

Personal loans may be secured or unsecured. Where a loan is secured on the home then extra care must be taken to ensure full payments are maintained as the lender has legal rights to pursue possession for non payment. A secured personal loan is a priority debt and as such needs to be treated as one. If the loan is unsecured, and the individual finds themselves unable to maintain the contracted payments,then communication with the lender is the best advice
with an aim to coming to repayment arrangements with them. These payments would normally be worked out on a pro-rata basis, which means the amount of surplus income the individual has after paying out priority expenditure would be offered to the loan company. It is best to seek help from an independent advice centre who will calculate pro-rata payments for the individualand make the offer of repayment to the creditors.