Debt Consolidation Loans have been talked about for a while now. Are they worth pursuing or not?
If you consider that debt consolidation loans are much cheaper than conventional debt, then I have to say yes, go for it.
Remember, debt consoldiation loans only work if they are taken on a home loan. Why? Well, because your home loan is the cheapest form of debt you will have available. The interest rate (at worst) is 10.5%, whereas credit cards are close to 20% and personal loans and other accounts are in exess of 25%, so as you can see, doing debt consolidation can save you a ton of money in interest.
Another positive is that you’ll be able to plough the savings back into your bond, which means you’ll pay it off quicker.
If you don’t do that the consolidation is just a quick fix and you’ll be paying off the credit cards and loans over 20 years.
So, when considering debt consolidation loans be sure that you’ll be disciplined enough to take the amount that you’ll be saving each month and putting it back into the bond.
You’ll have less stress and only 1 debt to pay…….relax.
For more information on debt consolidation loans don’t hesitate to contact us.