Is Debt Consolidation Right for You?
If you've been struggling to keep up with your bills, then a debt consolidation loan is for you!
A debt consolidation loan combines all your outstanding debts into one, so now you only have one debt at a reduced rate of interest and lower monthly payments than the combined cost of all the consolidated bills.
You can combine all of your outstanding debts into one and get lower interest rates than the combined cost of all those payments
Homeowners guide for debt consolidation
Take a look at the benefits of consolidating your debts with one repayment.
If you have become overwhelmed with multiple debts and you are struggling to make minimum payments on any or all of them, rolling all these into one repayment can be easier and less stressful to manage.
Life can get overwhelming, and sometimes it's tough enough just covering your living expenses like petrol or groceries each week without trying to juggle multiple payments from creditors as well.
If you are wondering how to manage all those debts? You're not alone!
Fortunately, there is an option that might help you out: Debt consolidation loans let you combine different types of debt into one monthly payment while reducing interest rates in some cases...or even eliminate them altogether.
Get a debt consolidation loan to pay off your mortgage and other debts!
Simplify your monthly repayments with a single payment for all of your credit cards, loans and overdrafts!
Another reason to consider a debt consolidation loan is if you want to focus on paying off a mortgage. By lumping all your other debts together, you can simplify repayments, and enjoy the benefits of a reduced interest rate.
This gives you more funds to channel into your primary debt, increasing your equity.
No matter how many bills you have, it can be difficult to prioritize payments and keep track of all your debts. It's easy for your liabilities to stack up on top of each other month after month until one day everything comes crashing down in the form a default or collection notice.
Don't let creditors bully you!
Negotiating with individual creditors might help you buy some time or even reduce or cancel the debt.
Double-check the figures before signing off on a debt collector agreement, check that this is the only option for you.
As this could be harmful to your credit file for years to come. Be sure to explore all your options before you sign any such agreement.
Reassess your current loans.
Calculate how much you can save on interest costs and fees
Before securing a debt consolidation loan, you could investigate whether switching your home loan would be beneficial.
If you can find a home loan with lower interest and lower fees, you could channel the savings into repaying your debts. As your property is your primary asset, it is important to protect this asset while you reduce your total debt.
The idea of debt consolidation can be a tempting concept; after all, it seems like one less thing to worry about.
Debt consolidation loans provide additional funds with which to pay off debts such as credit cards and personal loans - You may have an even better chance by refinancing or switching your home loan if you can eliminate other debts as a condition of getting you refinance home loan approved...
Credit card balance transfer
Transfer the balance from your credit card and get 12 to 18 months interest free!
Credit card balance transfer is a short-term solution. A credit card balance transfer – where you move credit card balance from one credit card to another – gives you access to a honeymoon period where the new card has lower interest rate or interest free for a certain time.
While this can be helpful if you can pay the debt off promptly, it can also aggravate the situation.
Remember that applying for additional credit cards will increase your total debt and adding more interest charges onto what you owe if not paid in full during the introductory period!
Double-check the figures.
Find a solution to your financial problems!
Before signing off on a debt consolidation loan, check that this is actually the cheaper option.
The new loan is meant to reduce your overall costs and interest charges, so make sure this is the case. Avoid any “honeymoon” deals where the interest jumps drastically after a certain time frame, as you do not want to dig yourself deeper into unnecessary debt.
Living within your means.
You don’t want to start collecting additional debts on top of the consolidation loan, so stick with one credit card for emergencies and set some strict limits on your spending.
Make it your priority to reduce this loan by any means necessary and speak to a financial counsellor to discuss any issues you have in relation to spending.
Make regular repayments.
Just because the original creditors have stopped bothering you doesn’t mean the debt has been wiped clear.
Focus on paying off the debt within a realistic and efficient time frame with regular repayments. By reducing all your other debts, you can focus on paying off your home loan, as this increases your equity and improves your overall financial position.
Don't let your debt get out of control. By paying off the mortgage as quickly and efficiently as possible, you'll open up resources to help pay for other things in life that matter- like a vacation or retirement savings plan!
A good credit adviser can help you decide whether a debt consolidation loan is the right strategy for you.
Debt consolidation is a debt reduction strategy that can be an effective way to meet your goals.
A good credit adviser will help you determine if this option is right for you and provide information on the various options available, such as balance transfers or extended repayment plans.
If you are determined to reduce your debt and increase your equity, debt consolidation can be an efficient and effective option.
Contact Your Home Loan Consultant today and get your finances under control.