Reserve Bank Cuts Interest Rates

July 20, 2012

I’m very pleased to share with you that yesterday the South African Reserve bank but it’s REPO rate by 0.5% or 5 basis points.

 

This means that banks and financial institutions should now all be on par with a prime lending rate at 8.5% – this is the lowest rate in over 30 years and is welcomed by all.

Read the rest of the story here:  http://www.property24.com/articles/prime-interest-rate-cut-to-85-percent/15881?SourceFeed=News24

* 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.


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.


Debt Consolidation Loans

October 12, 2009

If you are interested in finding out about debt consolidation loans then click the link.


Is Debt Consolidation For Me?

September 28, 2009

How do you know if you should apply for debt consolidation?  What is debt consolidation?  Will debt consolidation harm your credit record?

These are the common questions people ask when debt consolidation is contemplated and I will try to answer these in this article.

Debt Consolidation – what is it?

Debt consolidation is a way by which you can pay off all your smaller debts and roll them together into one big debt consolidation loan.

Debt consolidation should never be done if it is going to place you under administration or debt review – you should always ask questions and read everything before you sign documents.

Debt Consolidation – should I apply for it?

As mentioned in the point above, with debt consolidation you replace smaller debts with a big debt.  Debt consolidation should never be done if it comes with a high interest rate.

It will only work if you are taking smaller accounts, personal loans and credit cards and pay them off with a low interest debt consolidation loan.

The only way you will really get a good deal on a debt consolidation loan is to take a larger mortgage and use it for that.  But aren’t you at risk of losing your house?

If you can’t pay your debts and also go into arrears on your mortgage you are already at risk of losing your house.  If your credit cards, personal loans and accounts add up to R200 000 and you add that to your mortgage, do you know that it would only cost you an additional +/- R2000 per month.  With R200 000 in credit card and personal loan debt the installment on that would be close to R8000 per month.

That means that you will be R6000 better off every month.  Debt consolidation into your bond makes much more sense.

Debt Consolidation – will it harm your credit record?

If you apply for debt consolidation as mentioned above the short answer is no.  Mortgage debt is good debt, it’s the loans and credit cards that are bad.

The only way a debt consolidation loan can harm your credit record is if you are duped into putting yourself under administration.  That’s where a court order is obtained and your debts are placed in the hands of administrators.  Every month you would have them a certain amount and they pay off your creditors, after first taking their cut or commission.

The result is that for 7 years you will not be able to apply for a car loan, cell phone account – anything.

Be wary as many administrators trick people.

That explains debt consolidation in a nut shell.


Debt Consolidation Loans Offers Financial Relief

February 7, 2009

Making use of debt consolidation loans means that you will be able to consolidate all your various loans and accounts into one account. This means that instead of having multiple loans to pay at the end of the month, you only have one loan from one lender to pay.

Replacing several loans with one consolidation loan will also save you on costs associated to loans, such as monthly admin fees, annual fees and bank charges for multiple payments. Even though debt consolidation loans are a good solution for most individuals, do some research before you go ahead and apply, just to make sure that it is the best option for you.

It is very popular to make use of a second bond on ones property to use for consolidation. This means you are making use of the equity that has been built up during the years that you have been servicing your home loan. Using this option has a lot of advantages, and will give you some financial relief. A home loan will offer you both a lower interest rate and a longer loan term.

Even though the longer loan term means you will pay less every month, it is strongly advised to use some of the extra cash you now have available to pay off your debt consolidation loan. The longer the term of the loan is the more interest you will pay. So by paying more than the minimum instalment will reduce your debt faster, and will save you even more in the long run.

Always shop around before you make a decision. Many lenders will make money from adding on insurance which is not really necessary. By shopping around you can avoid making decisions that will cost you unnecessary money. A lot of these mistakes can be avoided by making use of the services of professional bond brokers.

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


Consolidate Debt – A Pain or A Painkiller?

February 7, 2009

We are living in a time when most people are trying to save a cent wherever they can. It is also a time when many are trying to consolidate debt that they have incurred during previous, more prosperous years. However, some consider it too much work to go through the process, and it’s just not worth it.

While it is true that it takes both time and effort, debt consolidation might be the answer to your financial headaches. Let’s look at some of the benefits:

1.    Instead of having several loans to pay at the end of each and every month, you only have to pay one. This will save you a lot of time and effort. You don’t have to keep track of various due dates or minimum balance requirements. This means less to worry about.

2.    Since you now only have one account to pay every month, it will be much easier to draw up a comprehensive budget, and it will be easier for you to plan your finances. When you have several loans to pay during the month, it’s very likely that they have very different due dates. So one or two loans must be paid the first week. Some the second week, and yet some others the third week.

This means that the money that is reflecting in your account is not really yours. It’s definitely not yours to spend as you wish, because you have loans to pay, and you need to make sure there is enough money left.

With all your accounts consolidated into one account, you pay it once, and then you are done. The money that is left in your account is yours to spend as you please.

3. One major benefit is the fact that the interest rates are half to one-third of the interest charged on revolving credit card accounts. The difference between the two is that your debt consolidation loan is a secured loan (home loan) and not an unsecured loan (credit card, personal loans, etc). This will mean a great reduction in interest rate and longer loan terms. The result will be lower monthly payments, which means you will be able to work with cash instead of credit in your daily life.

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