The cost of living is growing everywhere in South Africa and especially in the large cities like Pretoria. If you have accumulated a considerable amount of debt and you have difficulties with its repayment, you should consider debt consolidation in Pretoria. It is all about bundling all of your existing debts together.
Opportunities to consolidat debt in Pretoria
You take out a debt consolidation loan and use it for the payment of all of your current obligations. The new loan will have lower interest rate compared to the average rate which you are currently paying and this will result in a smaller monthly payment compared to what you pay at present. Besides, you will have to deal with a single payment instead of multiple ones. The major benefit is that you will have more free cash at your disposal every month. If you repay your new loan diligently, you will have higher chances of qualifying for loans with lower interest rate in the future.
The debt consolidation loan which you take out will be tailored to your needs. You will have to pay a monthly instalment which matches your income and budget. At the same time, the initiation of the new loan involves a set of costs which you will have to pay out of your pocket so you will need to provide for them as well. Still, even with these costs you will generate considerable savings every month.
You can work with a financial expert who will help you select between the two main options for debt consolidation in Pretoria. The secured debt consolidation loan is backed by an asset which is typically a house. As the loan is secured, it will have a much lower interest rate and a longer repayment term. These two factors will make the monthly instalments much smaller, but due to the longer term you will have to pay more interest. Generally, this option is suitable for managing larger debt amounts.
The unsecured debt consolidation loan is not backed by collateral. It will have a higher interest rate, but a shorter term. This will help you save on interest. This option is recommended for those who have small debt amount at present or want to repay a loan for an asset with a high amortisation rate such as a car.
You will benefit greatly from using the services of a financial advisor specialising in debt consolidation. The professional will help you pick the right loan among the different products available. You will get assistance with making the application and advice on the management of your debt in the future.
With debt consolidation in Pretoria, you can save money while getting timely relief from debt. Use this opportunity to improve your finances.