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.

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.

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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