If you are considering a consolidation of your debt, see below the 3 main reasons for opting for a debt consolidation mortgage. You may see yourself in any one of these situations.
- Avoid Legal Issues – this is in the event that you have breached your credit agreement and the creditor is seeking full payment or suffer legal consequences. These consequences could involve defaults, judgments, bankruptcy (if you fit within bankruptcy guidelines)
- Reduce Your Monthly Payments – the debt payment schedule is stretched over a longer term and/or lower interest rate to enable effective management payments. The new term of the loan is secondary to the final payment as you are currently struggling with day to day living expenses.
- Reduce your interest rate & interest bill – You have noticed that the interest rate on your credit card is quite high and you wish to take advantage of lower interest rates. Lower interest rates and high payments can see the credit card debt paid off in a short amount of time. You don’t have day to day budgeting issues though you don’t wish to pay interest on the cards over an extended period of time.
Each of the above reasons have a different approach to paying the debt off which are based on your individual circumstances. We will discuss these details with you prior to establishing a consolidation loan to ensure you have the most appropriate solution for your needs.