Old Mutual Loan Consolidation – A Wise https://best-loans.co.za/auto-repairs/ Alternative to Make Repayments Easier
Old Mutual Loan Consolidation loans are specially designed for those individuals who are struggling financially or seeking to consolidate their existing multiple loans into one. These are instant payday loans which enable borrowers to repay multiple unsecured loans in lump sum at a later date without any paper work. These loans are very popular among borrowers who are in need of quick cash and have a bad credit history. These loans are available to applicants having poor credit history but the process is very easy.
What you require to avail old mutual loan consolidation loans are; a checking account. Your application will be approved after verification of your current financial status. Besides, you also require to deposit an amount equivalent to the loan amount in your bank account on the due date. The repayment of old loans is also dependent upon your capacity to repay the loan amount in a lump sum. You can get old mutual loan consolidation only if you have a good credit history.
You can get instant approval for old https://best-loans.co.za/auto-repairs/ mutual loan consolidation loans and the approval is done within hours. The beauty of these loans is that you do not have to fax any documents to the lender. All sorts of bad credit issues like arrears, defaults, late payments, CCJs, bankruptcy are not allowed. Similarly, you can also apply for old loans from online lenders.
There are many benefits of old mutual loan consolidation. First of all, you will be in a position to repay the loan on time as your old loans will be consolidated into one. Secondly, you will be free from the hassles of collecting different kinds of payments and paperwork. Moreover, the interest rates are also very low. You can expect to get half percent as interest for your old loan.
The interest rate of the new loan will probably be higher than that of your old loans. However, it will still be lower than that of the new mortgage rate. This is because the new loan will have to compensate the difference in amortization. The benefit of this is that you can pay off the loan earlier. This helps you save money on the tax man. However, you need to remember that the total debt you incur during consolidation is not reduced.
A major disadvantage of consolidation of loan is that you may end up paying a high interest rate. You can reduce the interest rate by paying some upfront fees. It is advisable to look for other means of lowering the monthly payment and get the lowest possible rate. If your old loans are being eliminated, then you can shop for other loans and get the best possible deal.
However, there are some people who believe that the old mutual loan consolidation should be done only if you have no choice. These people feel that you should do the old loan consolidation only when you have no other option. Well, you should realize that doing the old mutual loan consolidation on your own might not be very good. You might end up in more financial problem.
It is advisable to go for refinancing if your credit rating is not too bad. Moreover, there are some online services that help you find low rates for the consolidation of loans. You should compare the various quotes and choose a loan that has the lowest interest rate and balloon period. Once you consolidate all your loans at lower rates, you can easily pay off the loan in a single and affordable amount.
However, choosing the right type of consolidation depends on the individual circumstances of the borrower. If your current interest rate is too high, you should opt for a fixed rate loan. This will help you save money on the long term. However, if the current rates are too low, then a variable rate loan can be a better option. Here, the amount of loan that you take as repayment is decided according to the inflation rate.
One more thing is that you should also consider whether the consolidation is secured or unsecured. If you take a secured consolidation, you will be benefited with low interest rates. However, the risks involved are quite higher as there is a possibility of losing the collateral if you fail to repay the loan amount. On the other hand, an unsecured consolidation is offered at lower rates but the risks associated with it are quite higher. So you should consider the risk-payback ratio of the loan before opting for it.
So, if you are thinking of old mutual loan consolidation, then you can always go for it and get rid of those multiple repayments. This way, you can free up some valuable money for investments or spending. However, you should ensure that you repay the old loan in time so that you do not face any financial problems in the near future.