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The goal of a debt consolidation loan is to make a loan to pay off all your debt !. this is a quick easy outcome of getting out of debt, your debt problems will be over. and you will only be sitting with the one loan to pay off, this will have a very very good debt interest rate to fit your pocket and to keep you out of debt, the best of times is a click away for you and here is your opportunity to fix your mistakes! to fix your debt. Get your debt consolidation today and save your live! be debt free and be happy! Be your dream debt free you !
For an imidate debt consolidation loan, fill in the form here, find the right people to help you with your debt consolidation and debt consolidation loan, we are here to help you get out of debt. South Africa is starting to become on of the countries with the most debt problems, this is a big sign and a clear warning to all of us that debt is dangerous and debt is starting to take over so many peoples lives!.
Make sure you do the right thing and get Your Answer to your debt today!. Debt consolidation is one of the best options to get rid of your debt and to make sure you only paid what you used!. Stop paying more and more for rates and fees on your debt its not the right thing!.
Your Answer to Your Finance is here.! You made the right click to YOUR DEBT FREE LIFE!
Fill In The Form on one of these and get Your Answer To
DEBT PROBLEMS!
- DEBT CONSOLIDATION For the best way to pay all your debt off at once
See More On Debt Consolidation
- DEBT CONSOLIDATION LOAN
- PERSONAL DEBT CONSOLIDATION LOAN
- DEBT COUNSELLING to get counselling on how to manage your debt and how to get less amounts to pay
What is debt consolidation?
As the name suggests, debt consolidation is where you consolidate – or combine – a number of individual debts into a single debt. It is a relatively new concept in South Africa, although it has grown rapidly in popularity throughout the UK, Europe and the US in recent years.
Instead of having lots of little debts; such as store cards, credit cards, short-term loans and overdrafts, debt consolidation wraps all of those smaller debts into one bigger loan. At the moment in South Africa this usually means increasing your home loan and using the extra cash to pay off all your other small loans.
Why consolidate your debts?
Having lots of smaller debts can be expensive and it can also be complicated to keep on top of all the repayments. Typically store cards and credit cards have interest rates ranging from 17% to 30%, whereas a short-term loan could have an interest rate of almost 40% depending on your credit history. So this form of borrowing is more expensive than a home loan, which will usually have an interest rate of around 12%.
On top of that you also have to remember to make your monthly repayments on each individual loan or credit card, which will probably mean lots of different payment dates, making it harder to keep track of what has to be paid and when. If you are late with a repayment, or you miss a repayment completely, you will probably be charged a penalty fee that will just add to the amount of money you owe.
So by having lots of little debts you will probably end up with lots of smaller, but expensive monthly repayments. If you consolidate all your debts into your home loan, on the other hand, you will have just one monthly repayment to make that will usually be less than all of your old monthly repayments combined.
Equity in your property
To be able to consolidate your debts into your home loan you need have equity in your property. This means that the current market value of your property must be higher than the size of the home loan you have on it. If your property is worth R750,000 and you have a mortgage of R500,000, then your equity is the difference between these two figures – R250,000.
So if you currently have a home loan of R500,000 and you wish to consolidate R100,000 worth of smaller debts into a new mortgage, then your property needs to be worth more than the new home loan amount of R600,000. How much more will depend on the provider and what percentage the total home loan is of the value of the property.
The smaller the percentage of the value of the property – and therefore the greater the amount of equity – then the more likely the lender is to give you a debt consolidation loan. If you have a lot of equity then your lender might even be willing to lend you money in addition to the debts you are paying off.
If you have very little equity in your property then you might struggle to get a debt consolidation loan. Lenders will also need to take into account other factors, such as your income and your credit history. As with any credit agreement you will have to prove that you can afford to meet the repayments on your new debt consolidation loan. If you have a poor credit history because of missed payments or judgements against you, this may also count against you.
A fresh start
Debt consolidation can help people make a fresh start. By rolling all their debts into a single, affordable loan, they can remove the stress of managing several loans and debts, can save themselves money on their monthly repayments, and take time to get their finances straight.
To make certain that people use their newly consolidated home loan to pay off all their outstanding smaller debts, many lenders actually insist on the consumer giving power of attorney to a lawyer whose job it will be to pay off those debts on the consumer’s behalf. They will probably even close down your credit card, store card and short-term loan accounts as well. This ensures that the original debts are cleared and that you are not able to incur new debts by keeping the cards and loans open.
As a result of the NCA, it also means that once you have taken out your consolidation loan, you will find it harder to get new credit anywhere else – such as store cards or credit agreements – because you might not meet the NCA’s criteria.
It is also important to take responsibility for your own debts and ensure that you do not start spending more than you earn and begin building up debts again. You should also be aware that because your new debt consolidation loan is a home loan, and therefore secured against your property, if you do not keep up repayments you will be at risk of losing your home.
If, as a result of your consolidation loan and new lower monthly repayment you find you have money left over at the end of the month, you should pay more into your home loan because not only will this bring down the length of your mortgage, it could also save you tens or even hundreds of thousands of Rands in mortgage repayments.
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