What To Know About Consolidation
If your debt re-payments are getting you down, don't despair, consolidate all your different debt repayments into one affordable monthly premium.
Approaching debt consolidation by raising your current bond you should watch out for some possible snags along the way, like a higher interest rate and longer repayment term.
Presently banks are not giving clients the large interest rate concessions they were offering several months ago, but you can still look forward to a cut of up to 1% below prime. This definitely is influenced by the conduct of your account, your risk factor ,credit record, and of course your affordability. If you use a reputable debt consolidation or financial solutions company you should still get a good interest rate discount and if not that, at least the discount you're currently enjoying. Make sure that you look at what you're currently paying in interest rate compared to what the new mortgage quotation or approval says.
Debt consolidation and longer repayment terms An experienced debt counsellor will advise you of your choice of refinancing the bond back to 20 or 30 years, or keeping it at the remaining term of your bond. Always remember that you will be paying less money per month, for the same debt, but it will be over a longer period. Always see this as a safety net, and not as an opportunity to spend more.
When your monthly affordability improves, you should always try your utmost best to pay more money into your bond. This will then allow you to pay off more of the capital, and in turn will save you a huge amount of money in the long run. By refinancing it your monthly repayments are reduced, which can provide you with more money left at the end of the month, but know that you will be paying more interest in the long run.
For more information on debt consolidation, debt counselling or refinancing, contact Money Menu for assistance.Yes, there are good products, and there are just plain bad products being offered out there. Usually, it is best to ask the company who you are dealing with to disclose to you what product house they are using.
My advice is to always stick with the reputable banks. Don't be tempted into signing anything untill you are sure that you are going to be better of with a debt consolidation loan.
Copyright (c) 2010 Andre van der Poel
Approaching debt consolidation by raising your current bond you should watch out for some possible snags along the way, like a higher interest rate and longer repayment term.
Presently banks are not giving clients the large interest rate concessions they were offering several months ago, but you can still look forward to a cut of up to 1% below prime. This definitely is influenced by the conduct of your account, your risk factor ,credit record, and of course your affordability. If you use a reputable debt consolidation or financial solutions company you should still get a good interest rate discount and if not that, at least the discount you're currently enjoying. Make sure that you look at what you're currently paying in interest rate compared to what the new mortgage quotation or approval says.
Debt consolidation and longer repayment terms An experienced debt counsellor will advise you of your choice of refinancing the bond back to 20 or 30 years, or keeping it at the remaining term of your bond. Always remember that you will be paying less money per month, for the same debt, but it will be over a longer period. Always see this as a safety net, and not as an opportunity to spend more.
When your monthly affordability improves, you should always try your utmost best to pay more money into your bond. This will then allow you to pay off more of the capital, and in turn will save you a huge amount of money in the long run. By refinancing it your monthly repayments are reduced, which can provide you with more money left at the end of the month, but know that you will be paying more interest in the long run.
For more information on debt consolidation, debt counselling or refinancing, contact Money Menu for assistance.Yes, there are good products, and there are just plain bad products being offered out there. Usually, it is best to ask the company who you are dealing with to disclose to you what product house they are using.
My advice is to always stick with the reputable banks. Don't be tempted into signing anything untill you are sure that you are going to be better of with a debt consolidation loan.
Copyright (c) 2010 Andre van der Poel
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