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is as good a time as any and in fact a better time than most,
to take advantage of the low rate remortgages and secured loans
on offer at the moment to tidy up your finances.
At the
same time, arranging a rearrangement of your outgoings and
money, can free up additional funds to enable you to buy or
do other things.
Most people
have a number of credit cards, and these cards are expensive
which make them far from the best way to make a purchase.
Sometimes
a credit card can be handy, and in fact essential, if buying
goods on the internet, as some people selling on the internet
do not accept payment by Paypal
Therefore,
having one credit card can make financial sense, but there
is seldom any requisite for two, three or even more cards.
When handing
over a piece of plastic, it can be easy not to fully take
on board just how much is being spent.
If buying
goods at say 500, it would seem to be a fair amount of money
if 500 in cash was handed over.
However
when it is only a matter of handing over a piece of plastic
and signing your name, the full sum actually being spent does
not appear to register in the same way.
Interest
rates for credit cards are seldom less than 20%, and can be
as high as 40%, and they take for evet to clear if only the
minimum payment of 3% of the balance is made monthly.
A simple
solution to credit card and other debts is to organize debt
consolidation, which will clear off all the other debts and
leave one payment in their place.
Debt consolidation
loans are not readily available to tenants, especially as
they are normally quite large loans when used to pay off a
number of debts.
However,
homeowners are in a perfct position to arrange debt consolidation,
and they have a choice of two main methods and these are secured
loans or remortgages.
As secured
loans and remortgages require the equity of a property, only
homeowners can appply.
A remortgage
is a totally new mortgage taken out with a different mortgage
provider that pays off the current mortgage, while at the
same time is for a higher amount than the existing mortgage,
as additional sums are required to pay of all the debts.
If a mortgage
stands at 180,000 and there is a bank loan of 12,000, credit
cards with balances of 30,000 and a car loan of 10,000 the
remortgage would be 232,000.
With secured
loans, the existing mortgage stays in place and the homeowner
loan is a stand alone loan.
For those
tied in with a current mortgage deal, a secured loan would
be the better choice, and as secured loans are more expensive
than remortgages, the former could be replaced by the latter
when early repayment penalties no longer apply.
Read more:
http://www.articlesnatch.com/Article/Debt-Consolidation-Loans-Arranged-By-A-Remortgage-Or-A-Secured-Loan/1259203#ixzz0uKiSqZNj
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