Debt Consolidation is the process of combining your smaller, more expensive debts, like credit- and store cards or personal loans, and consolidating them into one or two larger debts. This is ideally done through a homeloan as it is secured finance and hence at the lowest possible interest rate. Otherwise an unsecured consolidation can be used.
There are two main reasons why you would consolidate your debt :
- 1To reduce the monthly cost of your existing debt funding by decreasing your interest rate payable. Thus saving you interest and relieving your monthly cash flow.
- 2To try get rid of the complication of having to pay back lots of creditors. By concentrating on one or two large creditors you‘ll make your money management issues far simpler.
Should debt consolidation be the right solution for you, a trusted registered Financial Consultant will negotiate with your creditors on your behalf to consolidate the existing debt you have.This is NOT borrowing more, merely consolidating what you currently owe to manage your debt more effectively and affordably.
By answering the simple questions on our free online calculator we will select if this is most appropriate solution for your unique financial needs.
