Consolidating debt

Simplifying the picture

 

Sometimes juggling commitments to meet credit card payments, car payments and personal loans becomes tedious and time consuming particularly when the due dates for payments fall at different times. It becomes even more stressful when the commitments fall due but your income has not yet arrived to pay these commitments.

Loans secured by your property can be a very cost-effective solution, as the interest rate charged is usually considerably less than interest rates charged on credit cards or personal loans. The savings on interest can alleviate pressure on household budgets and you can put these savings towards paying the loans off faster, or improve your cash flow for other things. Let me show you how you can be better off!

You can also get some good financial advice from FIDO’s financial finance on consolidating debt.  Try out their calculator for starters, note however the debts are rolled into one large loan over the term of your home loan.

Tip: Consider structuring your consolidated debts into a separate loan from your home loan, with a shorter loan term so that these debts are paid off faster.