We come across many clients who could benefit for a debt consolidation loan, paying high interest rates on multiple loans. It is not uncommon for people to be paying off loans for two family cars, a personal loan for a holiday and multiple store or credit cards.
If you recognize this scenario, you may benefit from consolidating all this debt into one loan. The main benefit of a consolidation loan is that it allows you to pay one lower monthly repayment instead of multiple repayments. This provides immediate relief to your family’s budget and the amount you save can be quite significant.
A debt consolidation loan can be unsecured, meaning you do not need to provide the lender with an asset as security for the loan. If the loan is secured, it is quite common for the bank to take a mortgage over your home or other property as security. In exchange you will be offered a better or lower interest rate.
Use a debt consolidation loan wisely
It is easy to find yourself in debt and sometimes struggling to make ends meet; you need to control the debt and not let it control you.
A mortgage broker can help you make sure the debt consolidation loan does in fact reduce your overall repayments. With a loan of this type it is paramount that there are no hidden or unexpected fees and that it does provide real benefit to you.