Debt Consolidation - The Mortgage Hero To The Rescue
Get debt-free faster
Credit card debt, hire purchase agreements and personal loan payments have a nasty way of trapping people in a never-ending cycle. Consolidating these debts – with a top-up on your existing home loan – can save you interest, make your debts significantly easier to manage and help you get debt-free faster.
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Why Debt Consolidation?
You may have a range of debts – perhaps you’re paying off hire purchase, finance on your car and trying to get on top of your credit card debt. These debts aren’t uncommon – for many people, these finance options make good sense.
The problem arises when you begin finding it difficult to make all your payments. Maybe the combined payments are too high, or you have debts with so many lenders that it’s difficult to keep track of them all.
Missing payments can have drastic effects on your future. The missed payments will show on your credit history, which means lenders will be less likely to offer you finance in the future. That can be an annoyance if you want to upgrade your car or replace your broken washing machine, but it can be devastating if it means you’re denied a mortgage.
Simpler, lower cost
Consolidating your debt is a simple way to avoid that catastrophe. It doesn’t reduce the amount you owe, but it does make everything simpler – and can mean you’re paying less each month and less interest overall. Rather than paying each lender separately, you take out a new loan with a single lender. This loan is used to pay off all your HPs, credit cards and personal loans. That means that instead of many smaller debts, you have one big one with a single lender.
When we arrange debt-consolidation loans, we can often find finance with far lower interest rates, so you pay less in the long run. We can also sometimes negotiate for a repayment schedule that means you’re paying less each month. While this can mean you end up paying more in the long term, the lower interest of the new loan may balance this out.