There is a lot of talk at the moment about consolidating your loans. Most of the time there are great benefits to be had by doing this. Generally you can expect to bring down your average weighted interest rate as well as reducing your monthly commitments. Best of all though you might have the opportunity to bring down your interest cost but keep your repayments the same as way a of clearing your debts sooner. A well put together consolidated loan should give you both options. There are however many twists and turns in the way different lenders approach consolidating debt. Some lenders limit the amount or types of loans you can consolidate, the maximum “Loan to Value” ratio that they will allow for a consolidation loan or the amount of any cash out that you may be seeking.
It’s very important to approach consolidation loans in a mathematical way. Use a spreadsheet to help calculate the annual interest cost, annual repayment costs, lender fees and remaining loan term for each of your loans. You can than calculate the weighted average interest rate for all your loans put together and compare them against the available options in the market. From there you can get a complete picture of your potential savings. It’s important to do this accurately in order to get a true outcome. Our service does this for you and provides you with a simple to read report to enable you to make an informed decision about your loans going forward.
You have multiple monthly repayments that you need to manage.
You may be swimming in credit cards that never seem get fully paid off
You have “interest free” loans that are about to fall due
You have equity in your home that you didn’t have previously that could help you reduce your borrowing costs
You’re unsure which lenders specialise in consolidating loans
You would like just one simple repayment per fortnight or per month
Clients come to us because we can help resolve their immediate credit needs. Clients stay with us because we help them pay off their debts, so they can get access to prime loans with better interest rates in the future
The access to funds and expert advice has been absolutely crucial over the past 15 years in allowing us to operate our business successfully, pay our staff and our creditors on time. The market is always throwing up new challenges and Roger Castle has helped us navigate our way through.
Lyn - Business Owner (Supplier & Installer of Quality Floors)
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