If you are considering taking our a 2nd or 3rd bond to consolidate your debt, make sure you work with a professional home loans consultant.
There a quite a few pitfalls and traps one could walk into if you are not careful.
1) Debt Consolidation Pitfall 1 - Refinance
Many people wanting to consolidate debt want to take a 2nd bond, and unknowingly actually refinance. Now, that's not a bad thing if you are told upfront and you know what you're letting yourself in for, but if you didn't know, and now you start paying a bond all over at 20 years again, you'll be very angry.
Tip: If you don't want to refinance, tell your debt consolidation expert that you want the 2nd or 3rd bond to run along with the original bond.
2) Debt Consolidation Pitfall 2 - Fall Back into Debt
If you have taken a bond to pay off your debt, you already have an additional amount to pay. Don't fall into the trap of thinking that you now have all this credit available on those credit cards and that you can start spending again. If you do you'll have the same debt burged plus the additional payment of the 2nd bond.
Tip: If you have paid off your credit cards, cut up the cards and close the accounts. If you feel you absolutely must have one for emergencies or for your petrol expenditure, close all but one.
Remember, consolidating your debt into your bond is a good thing, if you take the wise route and avoid the pitfalls mentioned about.
For more tips or if you want to consider responsible debt consolidation loans, contact your debt consolidation expert today.
