Consolidating Your Loans

Best Guide On Consolidation Loans

by Grace J. Roddick

Consolidation loan is a financial tool that consolidates all your loans into one that is more convenient to repay. With the help of consolidation loans, your lenders will not be calling you or ringing your doorbell for their money. As consolidation loans bundle all your debts into one, you will end up paying a fixed interest rate to your lender.



If your debt is going beyond your control and there is no relief then,consolidation loans can help you release your entire debt burden. Consolidation loans consolidate all your present debt like credit card bills, store cards, car repayments, etc., into one easy loan that can be managed comfortably with low rate of interest.



Debt consolidation loans are one of the best ways of taking a new loan to pay off a number of debts. People are going for debt consolidation loans to consolidate debts at lower rate of interest and for the simplicity of a single loan.



Consolidation loans can be either secured or unsecured type. Secured debt consolidation loans are for home owners. Such loans are obtained against the collateral. Before signing a deal, factors like repayment terms, interest rates, other loan offers by the lenders and the credit situations should be considered.



Unsecured debt consolidation loans are suitable for tenants. Such loans are obtained without pledging your property as collateral. Unsecured loans are offered by the lenders at high rate of interest as compared to secured debt consolidation loans. But minimum risk and fast approval of loans are the positive points that can justify your choice.

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Be Ready for a Tough Year Financially

Be ready for a tough year financially

Unless you are a high-income earner with little debt, the year ahead could be a tough one as inflation is expected to continue to rise in the short term.
January 12, 2008

By Laura du Preez

If you are struggling to keep your head above water financially now, it's time to implement some corrective measures, because difficult times are likely to continue, with some relief likely only towards the latter half of the year.

If you have incurred a lot of debt, your most immediate danger is keeping up high debt repayments while the cost of living increases.

Arthur Kamp, Sanlam Investment Management's investment economist, says while there are still some concerns that interest rates may be raised again, the good news is that economists believe the peak of the interest rate cycle is in sight.

Kamp says we must be prepared for the CPIX inflation rate to continue to rise in the short term to as much as 8.5 percent. The latest rate for the year to the end of November is 7.9 percent.

The Reserve Bank's Monetary Policy Committee, which decides on interest rate moves, is due to meet again at the end of this month, but signs that consumer spending is slowing - such as fewer new vehicle sales - should allow the committee to leave rates unchanged, he says.

Kamp says CPIX should start to slow this year, as long as consumer spending moderates and the rand does not weaken significantly.

However, if inflation does slow as expected, it is still not likely to be back within the Reserve Bank's target of three to six percent before September or October and only then will the central bank consider cutting interest rates, he says.

So, you can expect your debt repayments to stay high for most of the year ahead. In addition, Kamp says with inflation continuing to rise in the short term, the real (after-inflation) growth in your income is likely to be squeezed unless you get a big increase during the year.

If you have a home or vehicle loan, your repayments will have increased eight times in the past two years, and higher food, transport, electricity, education and medical expenses are probably also putting your finances under pressure.


Source: http://www.persfin.co.za/index.php?fArticleId=4203435&fSectionId=596&fSetId=300