Always ask as many questions as possible, and if you can, get the advice of an independent person.
One of the pitfalls of debt consolidators is that they conceal Administration with debt consolidation.
If they put you under Administration it's a court order taken against you that for a certain period - minimum 5 years - you are not allowed to get any further credit anywhere.
They don't settle your debts!
These companies don't settle your debts, they simply make arrangements with the creditors to pay them off - unfortunately so much interest is charged that it's difficult to make a dent in the debt.
Make sure of your facts and always read everything before signing.
For more debt consolidation information visit our website on: www.globalproperty.co.za
Showing posts with label consolidate debt. Show all posts
Showing posts with label consolidate debt. Show all posts
Monday, October 25, 2010
Sunday, September 26, 2010
How To Create A Debt Consolidation Plan
Debt Consolidation - Many people are in debt struggling to pay their monthly bills. Most people are looking for help in creating a debt consolidation plan in hopes to be able to afford their payments and still be able to live. Some people will go to a consumer credit counseling agency, but many people are learning how to do it on their own.
Having a debt consolidation plan, individuals can determine the best way to get out of debt. There are so many different methods to getting out of debt, but all of them require you plan it out and budget it correctly. This will also help the individual to stay out of further debt.
Click here to read the rest of this debt consolidation article...
Having a debt consolidation plan, individuals can determine the best way to get out of debt. There are so many different methods to getting out of debt, but all of them require you plan it out and budget it correctly. This will also help the individual to stay out of further debt.
Click here to read the rest of this debt consolidation article...
Thursday, September 16, 2010
Drop in Interest Rates
The banks have dropped their prime lending rate to 9.5%. What does that mean for you? Well, your R500 000 home loan will no longer cost you R4785pm but R4624pm
R750 000 home loan will no longer cost you R7177pm but R6936 pm
R1 000 000 home loan will no longer cost you R9570pm but only R9248pm.
This also means that if you want to refinance or take out a 2nd bond you'll qualify for a little bit more - now is the time, contact us today: http://globalproperty.co.za/contactus.html
R750 000 home loan will no longer cost you R7177pm but R6936 pm
R1 000 000 home loan will no longer cost you R9570pm but only R9248pm.
This also means that if you want to refinance or take out a 2nd bond you'll qualify for a little bit more - now is the time, contact us today: http://globalproperty.co.za/contactus.html
Saturday, August 28, 2010
Monday, June 21, 2010
Want A 2nd or 3rd Bond? Be Careful!
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.
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.
Monday, March 22, 2010
Debt Consolidation Loan
Calling all home owners and non-home owners - if you want to consolidate your debt but you are blacklisted - contact us because we can still help you.
Of course, there are some rules, but we can help the majority of people (not debt review or administration unfortunately)
So why not contact us for a debt consolidation loan today.
Of course, there are some rules, but we can help the majority of people (not debt review or administration unfortunately)
So why not contact us for a debt consolidation loan today.
Tuesday, October 6, 2009
What are Your Options to Consolidate Debt?
Should one consolidate debt in a time when interest rates are so low? Is it a good thing? The correct answer would be absolutely ‘yes’.
Why do so many people shy away from the option to consolidate debt? To answer that question we’ll discuss 2 options and what their good and bad points are.
Consolidate Debt with a Personal Loan.
If you try to consolidate your debt with a personal loan you will probably end up paying a large installment because personal loans go up to a maximum period of 5 years.
The interest on a personal loan is also much higher than a home loan. If you are not a home owner, then a personal loan is the only option you have if you want to consolidate debt.
Have a look at the various accounts you want to settle and compare that to the personal loans’ interest rate and decide if it would be worth while. As a last resort to improve monthly cash flow – add up what you want to consolidate and compare that to what the new personal loan installment will be and see if you will be better off at the end of the month.
Consolidate Debt with a Home Loan or Refinance Loan
If you are looking at using your home loan to consolidate debt it would be a wise option. This is because interest on a home loan (at time of writing this article) is only 10.5% and all other debts normally average to more than 20% p.a., so this shows you will save quite a bit per month.
You will immediately see a drastic improvement in your monthly cash flow after you consolidate debt, but remember, you should put at least half of what you now have extra into your bond account, otherwise you’ll be paying off those debts over 20 years.
So yes, by getting a loan to consolidate debt you could significantly improve your monthly cash flow, but you must look at the various interest rates and monthly installments before blindly going into it.
Click here for more information on how to consolidate debt.
Monday, September 28, 2009
2 Things a Debt Consolidation Loan is Not
Okay, so you know what a debt consolidation loan is and how it works and what it can do for you, but do you know what a debt consolidation loan is not?
It’s good to know as you will have an even better idea of what a debt consolidation loan entails.
1) A Debt Consolidation loan cannot be used to Catch Up on Arrears Payments
A Debt consolidation loan can’t be done if you are in arrears on accounts, as the bank will look at your profile and according to that they will decline it.
You need to apply for a debt consolidation loan before you fall into arrears on the mortgage or other accounts, only then will are you able to able to consolidate because your mortgage originator will be able to do a full motivation on your behalf.
What does a motivation entail? A motivation needs to be done if you are applying for more debt than you can currently afford, but it’s actually for debt consolidation.
A reputable mortgage originator would show your current situation as well as the future situation if the debt can be consolidated. You would also need to provide the latest statements or settlement letters of the debt to be consolidated.
2) A Debt Consolidation loan is not Debt Review or Administration
A Debt consolidation loan should not be confused with debt review or administration because firstly, as mentioned above, you will not be in trouble already, and secondly your debt will not be paid in monthly installments.
With debt review or administration they will negotiate with your creditors and you pay the administrator or debt counselor a monthly amount and they split it up between your creditors.
Getting a Debt consolidation loan will see the bank giving you a lump sum to settle your debt, or, if they feel it’s necessary, instruct the attorneys to settle the debts first and then give you what’s left over, if anything.
That means that you will only have your bond to pay on a monthly basis.
As you can see, now that you know what a debt consolidation loan is not, also helps you get a better picture of what it’s about and your ability to make an informed decision.
It’s good to know as you will have an even better idea of what a debt consolidation loan entails.
1) A Debt Consolidation loan cannot be used to Catch Up on Arrears Payments
A Debt consolidation loan can’t be done if you are in arrears on accounts, as the bank will look at your profile and according to that they will decline it.
You need to apply for a debt consolidation loan before you fall into arrears on the mortgage or other accounts, only then will are you able to able to consolidate because your mortgage originator will be able to do a full motivation on your behalf.
What does a motivation entail? A motivation needs to be done if you are applying for more debt than you can currently afford, but it’s actually for debt consolidation.
A reputable mortgage originator would show your current situation as well as the future situation if the debt can be consolidated. You would also need to provide the latest statements or settlement letters of the debt to be consolidated.
2) A Debt Consolidation loan is not Debt Review or Administration
A Debt consolidation loan should not be confused with debt review or administration because firstly, as mentioned above, you will not be in trouble already, and secondly your debt will not be paid in monthly installments.
With debt review or administration they will negotiate with your creditors and you pay the administrator or debt counselor a monthly amount and they split it up between your creditors.
Getting a Debt consolidation loan will see the bank giving you a lump sum to settle your debt, or, if they feel it’s necessary, instruct the attorneys to settle the debts first and then give you what’s left over, if anything.
That means that you will only have your bond to pay on a monthly basis.
As you can see, now that you know what a debt consolidation loan is not, also helps you get a better picture of what it’s about and your ability to make an informed decision.
Thursday, August 13, 2009
Reduction in Interest Rate
The SARB announces a half a percent cut in the repo rate.
Over-indebted South African consumers are now breathing a sigh of relief because they will now spend less per month on high interest credit cards, vehicles and personal loans, and also enjoy a reduced bond installment.
This is a very good time for you to consider a debt consolidation loan, as interest rates are at their lowest in 3 years.
For more information on debt consolidation, please visit our website on http://www.globalproperty.co.za
Over-indebted South African consumers are now breathing a sigh of relief because they will now spend less per month on high interest credit cards, vehicles and personal loans, and also enjoy a reduced bond installment.
This is a very good time for you to consider a debt consolidation loan, as interest rates are at their lowest in 3 years.
For more information on debt consolidation, please visit our website on http://www.globalproperty.co.za
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