subject: Debt Consolidation Saves Vast quantities of money [print this page] Author: Elsa Agum Author: Elsa Agum
Many people appear to forget when taking out a Visa card or loan that they already have financial contracts that they must pay.
Many of us seem to regard their obligations as totally separate entities totally unrelated one to the other.
When the individual organized the 220,000 mortgage which they could easily afford at the time they could in fact afford it that is if they'd stopped simply at the new mortgage.
However after moving into the new house that they arranged the mortgage to buy, they fully recarpeted the property, and purchased all new furnishings for the public areas and the bedrooms.
The garden was replanted and terrace pots planted with tiny rose bushes.
A new conservatory was built and decking installed outside of the patio doors leading on to the rear garden of the property.
To suit and slot in with the new up market neighbourhood there's now a flashy sporty car sat at the door in a plan to keep up with the neighbors.
As such there's more than 220,000 mortgage to be paid each month and the Mastercard at 5,000.
There is now 15,000 hire purchase for the new furniture, the 10,000 hire purchase for the floor coverings, the do-it-yourself loan of 17,000 for the new conservatory as well as the vehicle loan of 20,000 and the loan to pay for the decking cost 5,000.
This gives obligations totally 72,000, and it is all very well that the new house is nicely and nicely furnished and there is a smart looking vehicle in your drive way but when the repayments of all of these debts are totalled up the monthly sum being paid out every month is staggeringly high.
There are folks who can afford the repayments but the majority cannot72,000 is a great deal of debt and after a bit most would struggle with the repayments.
Credit cards have rates usually above twenty percent to more than forty percent and the DIY loan if organized by thre renovation company will have a rate of interest of about 25%.
Hapinees flies out the window and puts family life in chaos when debt issues become pressing.
Labouring under a burden of debt and even having to remember on which date in the month the numerous payments have to be made becomes a burden.
Before the whole debt problem becomes insufferable, help should be sought in the shape of debt consolidation.
Debt consolidation can be arranged by way of a consolidation loan whereby all of the numerous pieces of debts are rolled into the one monthly payment and the mixed debt of in this instance The full consolidation sum is put into one single repayment and the debt consolidation incurs a rate of interest in the area of 9%.
Consolidation loans come with good interest rates that are actually a small part of the rates for private loans and credit cards and debt consolidation is terribly cost affective.
A remortgage may also be used for debt consolidation and a remortgage works in exactly the same way as a consolidation loan by mixing all of the other debts in to a single much lower regular payment monthly.
Think rigorously and decide if you really can comfortably afford the repayment before taking on debt.
If this advice is too late the next best course is to seek debt consolidation help.
