You see, debt levels are rising and consumer credit to households is estimated at R760bn with 14 million active credit consumers and 50 million open accounts. The average % of debt to income is 73%. At the same time there are 80,000 judgments for debt per month.
Credit card debt has seen a dramatic increase of 138 percent since 2004 while lease agreements rose by 123 percent in the same period. Is it any wonder that more and more people find themselves in a cash crunch at the end of the month?
With a debt consolidation loan you combine all your outstanding debt into one loan. Instead of having multiple creditors to pay you only have to deal with one. That alone can save you time and a lot of stress.
You arrange the repayment terms to fit your monthly budget. This means that you can now manage your debt and still have some money left over each month.
When you consolidate debt, you effectively roll all your outstanding debt and loans into one loan. You arrange repayment terms that fit your monthly budget – which means you can now manage your debt and still have some money left over each month for you and your family.
Have you ever sat down and figured out how much interest you are paying on your outstanding credit card debt??
That’s money that could have gone to paying down your debt, but instead it gets paid to the credit card companies month after month without making so much as a dent in your balances.
When you consolidate debt, you finally get rid of those credit card late fees and costly interest penalties. Starting fresh with your new loan, the money that would’ve gone to interest can now go towards reducing your debt!!
Zulika van Heerden provides more powerful articles and tips on her site: www.globalproperty.co.za