Three Reasons To Consolidate Your Debts

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The Three Best Times To Consolidate Debt Problems

If you are thinking about consolidating some or all of your debts, then read on. We explain the three best reasons to decide to take action and and apply for a debt consolidation mortgage. You may see an example of your own situation in any one of these situations.

  1. Avoid Legal Issues. This is in the event that you have breached one or more of your credit agreements. The creditor may be seeking full payment or threatening you with legal consequences. These threats could involve credit defaults, court judgments or bankruptcy (if you fit within bankruptcy guidelines).
  2. Reduce Your Monthly Payments. Combining debts may help reduce your monthly outgoings. Your debt payment schedule is effectively stretched over a longer term and/or lower combined or consolidated interest rates can enable lower monthly payments. The new terms of the loan are often secondary to the reduced payments as you are currently struggling with day to day living expenses.
  3. Reduce your interest rate and interest bill. You have noticed that the interest rate on your credit card or other personal loans is quite high. Because of this you want to take advantage of lower home loan interest rates. Lower interest rates and a single structured payment can see your old credit card debt paid off. You won’t feel like you are wasting money on high interest rates. You don’t have day to day budgeting issues,  you just don’t like paying higher interest on the cards or other debts over an extended period of time.

Each of the above reasons for choosing a debt consolidation mortgage is very valid. They offer a different approach to paying debts off which are based on your individual circumstances. We can discuss these details with you prior to deciding if a new loan is in your best interests. We are responsible brokers who will ensure you have the most appropriate solution for your needs.