Below you will find answers to some of the more frequently asked questions related to debt consolidation.
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It is a process by which some or all of your debts are consolidated into a larger one, and you pay one monthly payment.
No. Debt consolidation works by combining multiple loans into one, thereby reducing and eliminating interest, penalties, and late fees.
You make one monthly payment, which is lower than all the combined payments you make to all your creditors. The interest rate you pay is lower, resulting in more of your payment going directly to the principal. In addition, combining all your high interest bills into one easy payment takes the hassle out of bill paying.
This will depend on how much you are currently paying and how long you plan to take in repaying the new loan. With this said, reductions in monthly payments can be as much as 75%.
There are a variety of factors which dictate how much you can borrow. While your income and, for secured loans, the equity available in your property are important, the most important factor is your ability to repay the loan.
This is entirely up to you and will depend on how much you can afford each month. You should remember your original goal-to get out of debt! The longer you take to repay the loan, the more you end up paying in interest.
Yes. Consolidating your existing credit allows you to free up money for other things. You can borrow extra for that new car, boat, or caravan. You can even pay for your dream holiday or that home remodel project. The choice is yours, as long as you do not over-borrow.
You can always get optional accident, sickness, and unemployment cover if you want the added peace of mind this brings. Life assurance is also a good option.
After considering these questions, if you are ready to begin please contact us.