An effective solution to regain financial freedom is to consolidate all your debt – giving you only one, single debt repayment.
How does debt consolidation work?
Debt consolidation allows you to pool all your debt repayments into a single repayment. The main benefit is that debt consolidation allows you to increase your disposable income, leaving you with more cash at hand. Also, it makes budgeting as easy as can be.
What are the benefits of debt consolidation?
If you consolidate high interest-bearing accounts and loans, you can save on your overall debt repayment amount. Finding a debt consolidation loan provider with a low interest rate is thus important to ensure you are receiving the best deal available. Another fantastic benefit of debt consolidation is that you lower your risk of defaulting on your debt repayments as the debt consolidation loan amount is affordable, and easier to budget for. So, in turn this can actually improve your credit rating. Additionally, debt consolidation is flexible in that it can be structured to meet your very specific requirements.
Different ways of consolidating debt
Apply for a debt consolidation loan, it can consolidate your debt by means of a 0% interest card, to which you transfer all your debt repayments.
Using home equity is another viable debt consolidation avenue and is usually the lowest form of incurred interest. Consumers should note that home repossession is possible should you default on your loan repayments.
Regaining financial control and freedom
A debt counsellor is able to assist you reach financial freedom, and regain control over your finances. Pairing debt consolidation with debt counselling enables you to ensure you remain in financial control.
Debt counsellor are able to plan and implement and effective strategy for becoming debt-free.
Staying ahead, financially
Once you have successfully consolidated your debt, it is important to remain debt-free, which means you would need to refrain from making bad financial and credit decisions. As you will be increasing your disposable income, you might want to consider starting a savings account. This allows you have a safety net should you run into financial trouble. The number one mistake consumers make after debt consolidation is incurring more debt. This means you are left with existing, and new debt, defeating the goal of financial relief and financial control.
Get the best debt consolidation loan
It is advisable to negotiate the terms and condition of your debt consolidation loan with your credit provider. You are able to get the best interest rates, lowest repayment fees and a repayment structure that suits you if take the time to negotiate with possible lenders.
Debt consolidation is a great way to save money
People who are paying too much interest on debt and those who battle to pay all their debt repayments benefit the most from debt consolidation. As all your debt repayments will be transferred into one loan, you simplify your debt repayments and it is a healthy and smart way to becoming debt-free.
Vital steps to debt consolidation, and financial freedom
- First you need to identify your debt amount
It is important that you have an accurate total debt amount. The best method to make sure you have covered all your debt is to request a credit report. This can be submitted with the other supporting documents when applying for a debt consolidation loan. You can now work out the interest rates of all these debt repayments, which will give you a total of what you would ultimately be paying back on all your debt. If you compare this to your debt consolidation loan interest rate – you will have a clear indication of how much you would be saving on your debt repayments.
Next, you need to create a budget, and stay true to it
A budget is an effective method to track your income and expenses, and in doing so, make better financial choices. You will be required to determine how much your cost of living is and how much you can afford on debt repayment.
Apply for a debt consolidation loan
Use a loan comparison website to compare different lenders and their debt consolidation loan options. It takes the hard work out of finding the perfect loan to suit your personal requirements. Additionally, it ensures you are only dealing with reputable lenders in South Africa.
The final step is to be consistent, and to stick to the plan
The only way debt consolidation is successful is if you change your financial habits, and make healthier financial decisions. You will thus need to stick to your budget and refrain from incurring any additional debt.
Are you looking for financial freedom? Apply for a debt consolidation loan and reap the rewards of becoming debt-free. Simply apply online for a debt consolidation loan.