Debt Consolidation?
This is when you consolidate two or more debts into one credit agreement. We
often have various kinds of debts at different companies for example: clothing
accounts, personal loans, overdrafts, credit card debt etc.
These credit agreements all have different interest rates that they charge
you with each month. The interest rate usually varies between 20% and 40%
depending on each credit agreement. Therefor it is the best option to
consolidate all debt and at the end save by arranging this.
Here is the two types of consolidation nl:
Secured Consolidation:
With a Secured Consolidation the client has to own property that is either
paid in full or has a excisting mortgage bond. If there is sufficient loan to value (LTV) in
your property, the product house will most likely extend your bond in order to incorporate the other debt into one bond payment. Your debt will be paid off and you will only
have one payment each month that is payable on your bond. The greatest benefit is that you are now
saving because of the lower interest rate you are paying on your bond
Unsecured Consolidation:
Some people do not own property or a mortgage bond. There is the option of
unsecured consolidation. The approval of this product is only dependant on the
applicant’s affordability. This is also an great way to save money each month.
This is also done in order to be able to meet your monthly debt obligations.
