Consolidating car loan home loan irishsingledatingsite com
Debt consolidation is bringing all your existing debts together into one new debt, which can help you manage your repayments and give you a clearer picture of your financial future.You typically do this by taking out a new personal loan to repay your other existing debts, and then paying this new loan back over a set term. If you have three different credit cards with debts of, for example, ,000, ,000 and ,500, you’re likely to also have three different interest rates and to be making three different repayments at different times each month.This can feel overwhelming and complicate managing your cash flow.The interest rate on one card may be significantly higher than the others – and if the highest rate is on the card with the ,500 debt, you could be paying plenty each month just to cover the interest, let alone paying down the debt itself.To summarise, the key advantages of consolidating your debt are: Taking out a personal loan can also help with your budgeting.
With a personal loan you’ll have just one repayment to make every week, fortnight or month over a set term – you can usually choose your own frequency of repayments.
House purchasers consolidating non-mortgage debt in a mortgage must make down payments large enough that their loan meets the maximum ratio of loan to property value after the consolidation.
For example, assume the house price is 0,000, the borrower puts ,000 down, and consolidates ,000 of debt.
You can choose to lock in your interest rate with a Fixed Rate Personal Loan, or enjoy the flexibility of making extra repayments and clearing your debt sooner with a Variable Rate Personal Loan.
If you would like to speak with someone before taking any steps to consolidate or refinance your debt, we’re here to help.