Debt Consolidation

Using a secured loan is the easiest way to borrow. A very good source for security, is the equity in your property. This depends on the amount of equity that you currently have. It must be enough to finance your bills. For example, you may have a home that is worth about R130 000. Maybe you still owe R100 000 on the property. This gives you can equity of R30 000.

Check with your current mortgage lender. This may be your best source. Your lender is already doing business with you. They know you and your situation. They also have an interest in your property, already. This may make the entire process more simple. They may not require a property appraisal. This might save you several hundred dollars.

Make sure that you check other places and interest rates. Other lenders might have better terms or lower rates. It is important to get the lowest interest that you can. This will keep your payment down.

Suppose you owe about R20 000 on charge card debt. Maybe you owe that on four different accounts. Your payments could be R200 each month, per card. That comes to R800 every month. Suppose you decide to take a home equity mortgage. Your interest rate may be eight percent. You may get a deal with R490 payments over four years time. This can save R310 a month on your bill payments. This will work with any type of loan. It does not have to be credit card debt.

This will also give you a chance to pay off your credit cards. In four years time, the charge cards are all paid off. Not only that, your home equity is free again. You may wish to borrow for other reasons in the future. Home equity money can be used for any purpose that you wish. You can buy a new car or finance a college education.