If you’re looking for a way out of debt, chances are good you’ve come across the term "debt consolidation" and chances are just as good that everyone you talk to has a different opinion about it.
The simple truth is that debt consolidation most often is a financial strategy used by people trying to take control of their expensive debt. They owe thousands, maybe tens of thousands of Rands to various credit providers – such as store cards which on average charge around 26% interest rate – and decide to combine those debts into one manageable payment through a personal loan, which is substantially less, and thus provides an immediate cash flow relief.
It is also not as simple as either the critics or supporters suggest. Is it good? Is it bad? That is for you to decide, but first, we can try providing a better understanding of Debt Consolidation. Firstly - Debt consolidation isn’t for everyone but may be a useful tool to get your financial affairs under control.
Other than just managing one payment, personal or debt consolidation loans usually have fixed interest rates so it’s easier to budget and manage your financial affairs. Only having one loan to pay also means you’re less likely to miss payments, something that could impact your credit rating. Consolidating your debt can also save money on service fees and debit-order costs. Depending on how the loan is structured it could also improve your cash flow by requiring smaller payments.
The concerns raised about consolidation loans is that because the loan is easier to manage, and smaller repayments can free up some cash each month, consolidation encourages reckless spending. While this may sometimes be true, people often take consolidation loans because they are trying to be financially responsible and manage their debt better.
Another myth has resulted from a perception that debt consolidation is only for people who can’t manage their money properly, or in a negative financial position.
This simply isn’t true. Consolidation is a financial tool that can also be used by any individual to simplify their financial affairs, save on administrative costs and free up cash.
To make this easier, for all persons – there is a product RESET NOW on URL www.resetnow.co.za, that allows anyone to obtain their bureau report, and more importantly the full analysis of that bureau information, as to the best solution on your current debt – delivered in one easy report, with no personal questions. As for results - RESET NOW has a 72% success rate in finding a saving for clients, saving them an average of R2000 per month. The remarkable benefit is that this solution does not include debt that is cheaper – so it provides an answer suggesting your maximum cashflow and more often than not, allows you to take a smaller loan, as it is not necessary to include these amounts in your planning.
It couldn’t be easier anymore. You then own the information for you to make the decisions and manage your debt.