Debt Consolidation Loans bring relief

May 18, 2011

If you need to get urgent cash flow relief from the burden of high monthly debt repayments, then looking for reputable companies offering debt consolidation loans are the way to go.

The easiest and by far the least risky way to consolidate debt is through your home loan.  You’re probably wondering why I say it’s the least risky because you’re basically putting your house at stake?

I say it’s the least risk form of debt consolidation because often, opting for a debt consolidation loan by way of a personal loan can be a very expensive endeavor.

The idea is to reduce your interest and to reduce your monthly installments and most times a personal loan is much more expensive, not to mention the high interest.

Also, if you consolidate debt through your home loan you automatically have a much smaller repayment because the home loan is over 15 or 20 or 30 years and that will bring great relief monthly while you’re settling the debts.

Thereafter, you can use at least half of what you’re now saving on installments per month to make additional payments into your bond.  This way you reduce the term of your home loan and save on interest.

Debt consolidation is not ideal, but it does help you to manage your debt better and takes away the worry of high monthly debt payments.  Also, it gives you peace of mind knowing that you only have one debt to repay on a monthly basis.

If you are comparing debt consolidation loans and want more information or wish to apply, do not hesitate to contact us on www.globalproperty.co.za

* information correct as per time of posting

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Debt Consolidation Loans – Are They Really Obtainable?

February 11, 2010

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.


Season for Debt Consolidation

December 31, 2009

Have you found that you have been over-spending this festive season?

If you’ve answered no, you’re one of the lucky few, but if you’ve answered yes there is a solution.

Let’s help you consolidate all those credit cards and personal loans into your home loan.

If you have equity in your property and you qualify on your income, we can help you to consolidate your debt and ease the financial burden experienced by many on a monthly basis.

Taking a debt consolidation loan on your bond of R100 000 could mean a saving of approximately R5000 pm on other debts.

Think about that and then contact us:  http://www.globalproperty.co.za/contactus.html


Shed The Debt Burden With a Debt Consolidation Loan

October 19, 2009

Debt Consolidation Loan:  You need to take early action when repaying debt. When looking at taking a secured debt consolidation loan it will make sense because you can get rid of old debts with ease and reduce your financial burden.

Often you may even be able to get a debt consolidation loan even though you may have had some minor credit problems in the past. A debt consolidation loan will immediately settle the total outstanding amounts of credit cards, personal loans and store cards.

These types of debts are expensive, therefore getting rid of them with one big loan has many advantages. One huge advantage is that your monthly expenses will be drastically reduced, because this large loan to one institution costs must less than numerous payments to various creditors.

This means that you’ll have much more money saved every month to use as you please. You get much needed relief from the bigger debts by using a secured debt consolidation loan because it allows you apply for larger amounts against an asset of big value like your home.

The loan can be any amount, as long as you can afford it and there is enough equity in your property. The loan can also be repaid with the existing loan period or it can be re-scheduled or refinanced to 20 or 30 years.

Because you’re borrowing against a fixed asset with large value your interest rate will be much lower than unsecured loans. What’s more, if you have a good credit profile you’ll enjoy a debt consolidation loan at a lower interest rate.

If you have had credit problems in the past you will be penalized by paying a higher interest rate. To get competitive interest rates, go online and look for a reputable mortgage broker to do your debt consolidation loan as they can go to the various banks and seek the best rate.

Always make sure you pay your full installment on the debt and on time.


Why a Personal Loan Won’t Work for Debt Consolidation

November 24, 2008

Debt consolidation explained…

Everyone needs to borrow money at some point in their life. It can be as simple as asking a relative for ten-fifty for a burger, to be paid back later, to deals with lending institutions involving amounts ranging from tens to millions of rands. Money may be needed to purchase a car, refurbish a home, or deal with a medical emergency. As long as the borrower can repay the loan, there’s no problem—the borrower gets a need addressed and the lender gets some profit out of risking their funds. It’s when the borrower runs into problems repaying that things start to go sour.

Basic Loan Components and Types

There are so many loan packages available today that it can be difficult sometimes to distinguish the best one for a particular need. All loans come with three basic components: the principal, which is the amount actually borrowed; the interest, which is charged by the lender and is the way by which they make a profit out of the deal; and the miscellaneous fees charged upon setup.

Loans come in two basic varieties: secured and unsecured. Secured loans involve the borrower pledging some sort of security to cover the deal; this is commonly in the form of cars or other belongings, or a home or property. If the borrower defaults on the loan, the lender can then seize the agreed-upon collateral and sell it to try and recover some of its money. These sorts of deals come with low interest rates because some of the risk to the lender is covered by the collateral.

Unsecured loans, on the other hand, don’t require collateral, thus making them easier to acquire but at the cost of higher interest rates, to make up for the increased risk.

Personal Loans and Debt Consolidation

Personal loans, which can come in both secured and unsecured forms, are among the most basic of loans. They are used for everything, from covering the purchase of new appliances or that shiny new sedan, to funding vacations and dealing with unforeseen events.

Some people also take out loans to use them in paying off other loans, but that isn’t advisable. For one thing, unless the borrower manages to snag a really good loan, the amount borrowed will never be enough to completely pay off a previous loan. Then the hapless individual winds up with an additional financial burden on their back.

When faced with multiple loans with considerable interest charges, one of the best courses of action could be to use a debt consolidation loan from a reputable firm. Taking this course of action could probably result in lower monthly payments and reduced charges, as well as address the inability of some debtors to manage their finances. Not only that, financial education conducted by some of these firms could also lead the borrower not only to debt freedom, but also teach them to live within their means and stop the endless cycle of debt repayment..

For other related articles and advice, please go to http://www.globalproperty.co.za


Refinancing – Is it for You?

October 27, 2008

What does refinancing actually mean? It means: replacing your existing mortgage with another, lower interest rate loan. There are many good reasons to consider refinancing, including lowering your repayments, shortening your loan term, taking advantage of your home’s equity, debt consolidation, cash out options etc.

Mortgage refinancing can save you a lot of money if you do it right. Overpaying on your mortgage, when refinancing, is a common mistake that homeowners make, which costs them thousands of rands in interest.

Deciding if you should refinance or not depends greatly on what your financial goals are.

If you are refinancing in order to pay less interest, you would not see the savings right away. This is because financial institutions charge fees when you take out a new mortgage, and in some cases you also have to pay a penalty for canceling your old mortgage. To determine whether refinancing makes financial sense for you, consider these issues:

The Loan Term

It will not make sense to refinance your mortgage and start over with a 20-year term should your existing mortgage almost be paid off.

The Interest Rate

A percentage drop of just one half to three quarters of a percentage point can result into huge savings over the long term.
However, to get the benefits of a lower rate, you may have to pay fees associated with the mortgage.

Refinancing Costs

Refinancing is a lot like getting a new mortgage. Your lender may charge certain fees to facilitate your new loan. The benefits of refinancing add up over time, so if you do not plan owning your home for much longer, the lower payments associated with the refinancing may not cover the costs involved.

As a rule of thumb, the longer you plan to stay in your home the more sense it will make to consider refinancing. If your refinancing expenses can be recovered within the first 24 months of the new loan, mortgage refinancing is probably a good idea.

Pre payment penalties

Many mortgages carry a penalty if you pay them off early. If you do not wish to pay such a fee you will have to give your financial institution a 3 month / 90day notice period. Some however do not charge such a fee and you should go through your original loan documents to make sure.

The break-even point

If you can determine your break-even point, then you can start figuring out when you will start saving money. This involves a very simple calculation.

Start of by calculating how much you will save by lowering your monthly payment. Then add the costs associated with refinancing and divide the total by your monthly savings. This will give you an indication of the number of months it will take to reach the break-even point.
However to get a more accurate estimate, use our financial calculators on http://www.globalproperty.co.za


The Basics of Credit Scores and Credit Approval

August 19, 2008

Credit scores are one of the most important factors that lenders consider when someone applies for a loan. An individual’s score is considered to be an indicator of his or her creditworthiness.

The higher your score, the easier it is to get approved for a loan or credit card. It is possible for individuals who don’t have great scores to obtain financing and credit cards, but they are considered to represent greater risk. The terms under which their accounts are approved are not as favorable as those of individuals who have higher credit ratings.

Factors Impacting Credit Score

Many different issues impact your score. It is possible for individuals who have little or no debt to have lower credit scores than those who carry significant amounts of debt. Factors that are used in calculating an individual’s score include: the amount of revolving credit currently available to the individual, the person’s history of making payments on current debt, and how much debt he or she is currently carrying.

Verify Credit Report Data

If you’re planning to apply for a loan or charge card account in the near future, it’s a good idea to pull a copy of your credit report to make sure that it is completely accurate. If you find errors on your credit report, you should contact both the reporting agency and the company reporting the information.

It is not uncommon for errors to show up on credit reports. However, a lender isn’t just going to trust you about reporting errors. In order to improve your score, you will have to get the errors fixed. It takes time to get erroneous information removed from your credit history, so it’s a good idea to check your credit report at least once each year.

For more eye opening reports on Debt Consolidation, Credit Card Debt etc, please visit Zulika’s site on www.globalproperty.co.za