Debt consolidation is the process of taking several loans and combining them into one loan known as debt consolidation loan. This will help you save a substantial amount of money in interest payments and also reduce the repayment periods. It also makes your life much easier by giving you one repayment that is easier to manage. While this can be a good idea, you should consider the following first.
The cost of debt consolidation – What will be the cost of debt consolidation? In the end, will you save more money or will you lose more money, these are the questions you should be asking yourself.
Exit costs – Are there any exit costs from your short term loan? If there are such costs, will they cancel the benefits of consolidating your other loans with your home loan?
Benefits of debt consolidation
Lower monthly payments;
When you consolidate your debts, there is a high chance of obtaining a lower interest rate. You can also reduce your monthly payments by extending the repayment period.
Leverage the equity in your home;
You can use your home as collateral for the loan and negotiate a lower interest rate for your consolidated debts.
One time monthly payment;
Consolidating your debts makes life much easier because instead of making several monthly repayments, you will be making just one payment which will cater for all your debts.
If you ever need to consolidate your car loan, personal loan or any other type of loan with your home loan, just give us a call and we will help you throughout the process. At 365 Financial we will assist you in re-structuring your finances by listening to your needs and helping you choose the best debt consolidation solution. We offer more than 500 products from 25 different lenders. Therefore, you can rest assured that we will have a solution for your needs.
We look forward to servicing your financial future
Call 1300 77 21 21 today because you have a lot to gain and nothing to lose!