Do you have a tax debt or struggling with mortgage repayments? We can help you roll your debts into ONE
What is Debt Consolidation?
Debt consolidation involves rolling a number of smaller, high-interest loans into one large low-interest loan. For example, by rolling your car loan, credit card debt, personal bank loan and perhaps even tax debt into your mortgage, you may benefit from the simplicity of a single repayment and lower interest rate. Debt consolidation means you effectively pay off these debts by increasing the payments you make on your mortgage and/or extending the period of your home loan.
What are the benefits?
Nearly all loans charge higher interest rates than your mortgage which means that by transferring small high-interest loans into your comparatively low-interest home loan, you will.
Debt consolidation means you only make one monthly payment and you only have one creditor, and depending on how and when you make repayments you may be able to reduce your debt more quickly.
Are there any downsides?
The only potential disadvantage to debt consolidation is the time it takes to pay off all your debts. A car loan, despite having a high interest rate, may have a term of only five years. When you consolidate it into your mortgage, it has a term which could be as long as 25 or even 30 years. This means you’re paying the interest off the balance of the loan over a much longer period of time. To make a debt consolidation loan truly effective, you should commit to making additional repayments whenever possible to pay off the entire loan as quickly as you can.
Contact CapitalQ today to find out how we can help you.
Let CapitalQ help you
Through our strong relationships and long-standing connections with these mortgage providers, we can often secure better rates and deals than if you were to approach them directly.
CapitalQ can bring the banks to you. We deal with all major banks and building societies plus others with which you may not be familiar.
While we specialise in home loans our experienced mortgage brokers can obtain loans for virtually any purpose including equipment financing and investment loans.
We can also advise on debt consolidation strategies designed to reduce interest and save you money.