Glossary - Ability to Pay

Ability to Pay means the capability of making payments on your debts.
The lender is taking a risk in agreeing to an Enquiry hoping that the you can repay your debt obligations.
Lenders check the criteria of the your before giving them a loan or mortgage to see if they meet the currant future debt obligations.

Example: Debt Consolidation
Different debt consolidation loan companies charge people different amounts to manage their debts, contacting creditors and arranging loans and using the finance to pay off any debts. Consolidating all your debts into one, means that instead of making several monthly repayments you would only have the one more affordable payment to make. This one monthly payment would be easier to keep track of. The consumers ability to pay would be taken into consideration, should the outlay be to big then the consumer could find themselves in debt with the consolidation loan too.

Useful Tip
You can arrange a UK personal loan yourself by using the internet, you could find a low rate loan which would make sure that repayments are kept within your budget and within your ability to pay.

At PeopleFinance.co.uk we can help you find an Online UK Mortgage, Secured Loans or Tenant Loan, an independent financial processor will aim to get you the best deal, one that would suit your own credit circumstances. It would be a stress free process for you as we would do the searching.