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debt Consolidating Bills by Means of Your Mortgage
 

If you are serious about getting rid of your debt, especially your high-interest payments, now is the time to consolidate your debts. Besides reducing the outstanding balance on your debt this will help you reduce your amount of payments on different debts.

There are several different options you can use to consolidate your debt. Educate yourself to find the best solution for consolidating the type of debt that you have. It can be a home loan, personal loan, or additional credit cards.

If you have credit cards, car loan or medical bills, a personal loan is one way to consolidate these. But if you have a property with equity in it, this is an even better option to reduce your debt.

2 Ways to Use Your Property to Consolidate Debts:

1. Second mortgages

If you have equity in your property, you can access these funds by means of a second bond. The additional funds you will get out can be used to pay off your other, more expensive debt. This will help you save on interest, and you will be able to reduce your total outstanding debt faster by means of the extra cash.

If you compare with credit card rates, for example, second mortgages are often at a much lower rate, sometimes up to 10% less. This means you will save in interest. But you must be careful so that you don’t run up all the debt again, especially if you are consolidating credit cards. Sometimes it’s a wise decision to actually cut up the cards. Otherwise you will end up being worse off.

It’s good to remember not bringing the bond up too close to the value of the property. The property market is on a decline at the moment, so if you end up defaulting on your home loan you might have a problem to recover the debt if you have to sell.

2. Refinancing

If you current bondholder isn’t willing to grant you a second mortgage, you can refinance at another institution. You will the apply for a larger amount, so that you can pay off your existing home loan, and use the additional cash you get out to consolidate your other debt.

This is the perfect time to find out where you can get the best interest rate, and the best term for your mortgage, which will benefit you in the long run.

Why consolidating by means of your mortgage instead of a personal loan

I’m going to give you 4 reasons why opting for a mortgage is better than a personal loan when consolidating:

1. Lower interest rates: Your mortgage is the type of finance where you will get the most competitive interest rate.
2. The term of the loan: Your home loan can generally be long of short, depending on how you schedule it. But a personal loan is normally over a shorter period, which can put your cash flow under pressure.
3. The amount: The amount you can borrow depends on the value/equity in your property. So the more equity you have in your property, the more you can apply for. With a personal loan, the lender will only look at your financial standing, affordability, and credit standing, which often results in lower amounts.
4. Strict rules: Yes, the rules to apply for a home loan are very strict, but so are personal loans, as there is no security.

To consolidate your debt, using your home loan as the tool, gives you the ultimate chance to eliminate your debts. You will not be harassed by debt collectors and creditors any longer. But it is still important to remember that you are risking your home. If you can’t keep with the payment, you might lose your house. So before you apply for consolidation by means of you home loan, sit down and review your financial situation to prevent any nasty surprises.
 

To apply for a debt consolidation loan you will have to fill out a short application form. You will then receive a FREE quote from well established, nationally recognized lenders. You do not need to decide now whether the debt consolidation loan is for you.

Just apply and compare the repayments to your current situation. There is no obligation on your part. If you decide that it is not for you, you simply do not have to accept the offer. You have nothing to lose and everything to gain.

20 Second Application


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Debt Consolidation | Debt | Bonds | Home Loans | Refinancing | South Africa
 
Home Debt Consolidation Credit Card Debt Loan Products Mortgage Bonds About us Contact us


Rating
starstarstarstarstar
    more
 
   
  Debt Articles
 
>Good Debt vs Bad Debt Good Debt vs Bad Debt
Debt Consolidation Loans Are your debts keeping  you awake at night?
What Can You Do When Debts Start Spiraling What Can You Do When Debts Start Spiralling?
What Services Are Available To Reduce My Debt What Services Are Available To Reduce My Debt?
Are You Experiencing Credit Problems Are You Experiencing Credit Problems?
   
  Debt Consolidation Articles
 
Debt Consolidation Loans Is Debt Consolidation for You?
Everything You Need To Know About Debt Consolidation Loans Everything You Need To Know About Debt Consolidation Loans
Debt Consolidation Can Help You Break Free From Debt Debt Consolidation Can Help You Break Free From Debt
Is Debt Consolidation Too Much Work? Is Debt Consolidation Too Much Work?
Debt Consolidation For Dummies Debt Consolidation For Dummies
Is There Any Such Thing As Free Debt Consolidation Is There Any Such Thing As Free Debt Consolidation
Debt Consolidation Loans Types of Debt Consolidation Loans
mortgage broker Debt Consolidation Basics
   
  Debt Free Living
 
mortgage broker Don't Get Into Debt Dilemma
mortgage broker Do You Really Need a Personal Debt Consolidation Loan?
Debt Consolidation, credit score Lowering Your Debt for Life
Debt Consolidation, credit score Debt-Free Living
How Can Debt Consolidation Services Help Me? How Can Debt Consolidation Services Help Me?
   
  How To For Debt Consolidation
 
How To Find Cheap Debt Consolidation Loans How To Find Cheap Debt Consolidation Loans
Debt Consolidation: How To Avoid Being Scammed Debt Consolidation: How To Avoid Being Scammed
How To Know What To Look Out For In A Debt Consolidation Company How To Know What To Look Out For In A Debt Consolidation Company
Debt Consolidation Loans How to Reduce Debt
Debt Consolidation, credit score How to improve your  credit score
mortgage broker How To Choose A Good Debt Consolidation Loan
   
  Debt Consolidation Advantages
 
Debt Consolidation, credit score Use a debt consolidation  loan to reduce debt
3 Reasons For Debt Consolidation 3 Reasons For Debt Consolidation
What Is The Purpose Of Debt Consolidation What Is The Purpose Of Debt Consolidation
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  Debt Tips
 
Debt Consolidation, credit score How Can I Reduce My Debt?
mortgage broker Which Bills To Pay First?
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  Budgeting
 
mortgage broker Budgeting & Debt
Debt Consolidation, credit score Budgeting
How Do Debt Consolidation Agencies Work? How Do Debt Consolidation Agencies Work?
   
  Debt Consolidation Calculator
 
Debt Consolidation Calculator Reduce My Debt Calculator
   
  Online Application
 
debt consolidation 20 Second Application
debt consolidation No Obligation Quote
   
  Information
 
mortgage broker Free Course by Email
mortgage broker Prequalify Myself
mortgage broker Free Reports by Email
mortgage broker FAQ
   
debt Debt Consolidation Mortgage: Using your home to pay off debt
 

Now is the time to consolidate your debts if you're serious about paying down your debts and getting rid of high-interest payments. Consolidation helps you reduce the number of payments on debts and reduces or eliminates your debt amount.

There are different options to consolidate debts but you need to choose the right way out considering the type of debt you have, be it a personal loan, home loan, multiple credit cards or a combination.

Using a personal loan to consolidate credit cards, car loan, medical bills etc is one way of getting debt-free. But utilizing your home is at times even a better way to reduce your debt especially if it's a combination of secured and unsecured loans.

2 Ways to use your home and consolidate debts:


• Pull out extra cash by refinancing:

If there is already a mortgage on the home and enough equity too, you may go for debt consolidation refinance wherein you'll be able to pay off the existing loan and take out extra cash thereby borrowing more than the loan balance. But refinance for consolidation makes sense only if market rates are comparatively lower than what you are charged currently. This will help you save in interest payments, and consolidate debts with the extra cash and interest savings. But you need to be clear as to why you are refinancing and how it can help you.

• Watch out for second mortgages:

You can try out with second mortgages for debt consolidation if you have thousands to pay for credit card debts and medical bills etc. You can borrow at fixed rates as well as adjustable rates (home equity line of credit or Heloc).

Compared to credit card rates, second mortgages are available at reduced rates, often more than 10% lower than the former. So, you are likely to save in interest by going for home equity debt consolidation. However, you need to be aware that you don't run up the credit card balances right after consolidation or else you'll be in debt again!

Only consider home equity debt consolidation if you think you can afford payments on two mortgages.
 

To apply for a debt consolidation loan you will have to fill out a short application form. You will then receive a FREE quote from well established, nationally recognized lenders. You do not need to decide now whether the debt consolidation loan is for you.

Just apply and compare the repayments to your current situation. There is no obligation on your part. If you decide that it is not for you, you simply do not have to accept the offer. You have nothing to lose and everything to gain.

20 Second Application


apply

 
 
     
  bot
home | blog | about us | testimonials | FAQs | contact us | our loan products | home loans | bond calculator
bond refinancing | bond application | debt consolidation | home improvement loan | 2nd bonds | business loans

RSS Feed | XML Sitemap | ROR Sitemap
Terms and Conditions, Privacy Policy, Copyright 2007 Global Property Finance
Cape Town, South Africa. Tel: +27 086 110 6204