Create A Debt Consolidation Plan

October 20, 2010

Debt Consolidation – Many people are in debt struggling to pay their monthly bills. Most people are looking for help in creating a debt consolidation plan in hopes to be able to afford their payments and still be able to live. Some people will go to a consumer credit counseling agency, but many people are learning how to do it on their own.

Having a debt consolidation plan, individuals can determine the best way to get out of debt. There are so many different methods to getting out of debt, but all of them require you plan it out and budget it correctly. This will also help the individual to stay out of further debt.

1. List Your Debt
Always start out by knowing exactly what the total debt owed is. Grab a pencil and paper, and make a list of everything that is owed. Any cars, your house, student loans, credit card debt, store accounts, etc that is owed should be listed. Leave out any second mortgages or home equity loans. Rewrite the list in order, by the highest interest rate to the lowest interest rate.

2.Calculate Monthly Payments
Next calculate the monthly payments for each one of the debts listed. Write down the minimum monthly payment for each one. The goal is to reduce your monthly payment amounts.

3. Calculate Outstanding Debt
On the other side of each of your outstanding debt, write down the exact amount still owed. Add up the amount you still owe, as well as the monthly amount you spend paying your bills. Remember this amount does not include your everyday expenses such as petrol, utilities, food, etc.

4. Shop For The Lowest Interest Rate
Browse the different consolidation loans that are available today to help with your circumstances. There are secured loans and unsecured loans, but you want the lowest rate line of credit available. Shop until you can find the lowest rate with enough credit to cover your total amount of debt that you owe.

5. Contact Lenders
Contact the lender and explain that you are looking to rid yourself of your debt through their loan. This is extremely pertinent to tell them because some lenders when they look at your debt will not give you more credit than what you have. If you are closing the other accounts and getting rid of all balances, the lender is more likely to help you.

6. Create a monthly budget.
Once your old debt is paid off through the consolidation loan, it is exceptionally easy to fall back into the same amount of debt. Do not allow yourself to make that move. Track all you’re spending, and make sure your loan is paid off first.

Always pay as much as you can on the consolidation loan so that you will pay it off faster. It is crucial to be strict with your spending during this time. It is very easy to fall back into your old spending habits that got you into the mess you are in. Do not indulge or overspend with the extra cash flow you may see each month. Save, and work on getting rid of the debt completely.

Debt is something that weighs people down. Debt can truly change anyone’s mood and entire personality. Once you remove yourself from debt you will feel like you are finally free. The freedom you will feel will make it entirely worth it. Do not give up as you work towards freedom from debt!

* information correct as per time of posting

Home Loans Cape Town – Can You Trust Your Bond Originator?

September 17, 2010

Home Loans Cape Town: Have You ever felt left in the dark by your bond ofiginator, not knowing what’s going on with your home loan application?

Many clients have told me that when this happens, they start to question whether the originator knows what she’s doing. 

Have you ever felt like this? ….well, you’re not alone

Click here to read the rest of this home loans cape town article.

* information correct as per time of posting

Debt Consolidation & Home Purchase

August 26, 2010

Doesn’t it just sound fantastic, you are a first time buyer and you buy your dream home and consolidate your debts at the same time so that you only pay the bond. Can it really work that way?

The sad news is, unfortunately not! Banks will only grant you a bond up to 100% of the purchase price.

That means that you would still need to cover the costs out of your pocket….and then what about the debts.

So, clearly you can see that debt consolidation is not possible for first time buyers. However, you can consolidate your debt into your bond if you are currently a home owner and if you have enough equity in your property.

You can also consolidate your debt when selling one property and purchasing another simultaneously To find out if you qualify for debt consolidation, click the link.

* information correct as per time of posting

Standard Bank = 100% Home Loans Again!

July 26, 2010

For more information on Standard Bank’s 100% Home Loan Policy, visit:

Calling all ABSA account holders

March 19, 2010

Courtesy of:

Are you an ABSA banking client looking for a home loan?

Until 30 April 2010 they’ll be offering special deals for individuals looking for home loans of R500 000 – R1 500 000 (excluding building loans, investment property, vacant lant, and fixed rates)

Although they haven’t disclosed what’s going to be making these deals so special, I’m guessing better interest rates.

If you’re one of those, don’t hesitate to contact us or click here for more information on ABSA home loans

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.

Should You Refinance SA Home Loan?

January 12, 2010

There are many great reasons to refinance your SA home loan and it may be a wise financial decision.

Some of the more popular reasons to refinance include lowering your interest rate, lowering monthly payments, debt consolidation and decreasing the home loan term to build equity quicker.

But, before you decide to refinance you need to the sums to determine if the cost of refinancing would be worth. Keep in mind that if your goal is to save money, you to calculate your break even point.

Your break even point is the point where your savings covers the cost of refinancing SA home loans. As a rule of thumb, the longer you intend on staying in your home the more feasible it will be to consider refinancing. It is a fairly simple calculation to determine your break even point which will help you to figure out when you will start saving money.

Add up the costs (prepayment penalties, registration costs etc.) of refinancing your home loan and divide the total costs by the amount you save each month. This will show you the number of months it will take before you start seeing real savings.

For example, if you refinance SA home loans your closing costs could end up to be R14,500.

Also your mortgage payment have gone down from R4,900 to R4,000 which translates into a R900 monthly saving. Divide the R14,500 by R900 which means that it will take you 16 months to break even. This is a fairly simple explanation, but it should help you to calculate if you should go through the exercise of refinancing your SA home loans or not.

In the above example if you plan on staying in your home for longer than 16 months it will be a wise decision to refinance