Month: June 2019

The Right Reasons To Consolidate Debt

There are many finance companies and other loan companies that make a lot of money from “selling” debt consolidation loans which is a process of refinancing loans and other debt that you may have.

These finance companies will often “sell” their loans on the basis that your weekly repayments are less,but don’t always tell you that they will extended the loan term,they do not tell you about the higher interest rates or the additional fees that you will be charged.

People want to consolidate their debts to help their financial situation and allow them to manage their money better; however you also should ensure that you are not just extending the loan term with higher interest rates and more fees just to reduce the weekly repayments.

The Right Reasons To Consolidate Debt

It is easy to get weighed down with debt and being mortgage brokers we do see a lot of people that are struggling to meet all of their loan payments. People may say that you should never have taken on so much short-term debt,but there are many situations where it has happened and it is no point dwelling too much on the past anyway. We need to deal with the debt that you have now and consider if a debt consolidation loan is the right option.

The first thing that a mortgage broker should do is get a statement of position from you so they can establish exactly what debts you have. Only then they should assess which debts should be consolidated.

This decision to refinance debt is typically based on the interest cost you are paying for each debt,the penalties (if any) for early repayment,the term remaining and the actual repayment amount.

You should refinance IRD debt where possible as the interest and penalties can be extremely tough,but why would you refinance an interest free loan?

There are times when you may refinance an interest free loan; however you would need to consider this carefully in the overall debt restructure to ensure that it is the best thing to do – normally it wouldn’t be.

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What If I Have Bad Credit?

As mortgage brokers we get approached a lot by people who have too much debt and want to get a debt consolidation loan,but have bad credit and therefore think that they cannot get a loan.

There are degrees of bad credit;
A few small defaults on your Veda report – we look at what these are and the reason that they happened and generally if we can explain these then the lenders will be okay with them.
Larger defaults and judgements on your Veda report – we will need a better explanation and we may be limited with the choice of lenders; however there are a range of lenders including non-bank mortgage lenders that have options.
Loan or mortgage arrears – any new lender will want an explanation regarding why the loans or mortgage is in arrears,and this could be the very reason that we want to arrange a debt consolidation loan.

Without looking at your personal situation there is no way of knowing if you can consolidate your debts when you have bad credit,but it is certainly worth looking at. A debt consolidation loan might be the best way to tidy up your credit and manage your way back to “good” credit.

Beware Of The Costs Of Debt Consolidation Loans

The costs of debt consolidation loans vary from company to company and depending on your situation and security. An unsecured loan will almost always be more expensive,so it is definitely worth considering using your vehicle or property to secure the loan and therefore reduce the cost of the loan. Also generally you will pay more if you have bad credit and other situations where you fit outside the “ideal profile” set by the lenders.

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Debt Consolidation Loan Comparison

It is extremely hard to source the information to do a proper debt consolidation loan comparison as many of the options to you are based on a risk assessment which sets the interest rate that you would be charged.

The costs involved in a debt consolidation loan are normally;

The interest rate – while often it is hard to find out what the interest rate is with debt consolidation loans you should always ask and compare this to what you are currently paying and also with any other options. Sourced from their websites GE Money quote an example of a 5-year loan with an interest rate of 19% and Finance Now quote rates starting from 13.95% – starting from!
Easy Loans (NZ) say they will quote on a case by case basis,Geneva Finance,QuickCash Finance,Instant Finance and Max Loans do not have any mention of rates that we could find.

The fees – a lot of finance companies will charge an establishment fee and some also charge on-going monthly fees and termination and/or early repayment fees.

Insurances – most finance companies will “sell” a payment protection insurance policy with every loan. This is generally a very expensive way to buy insurance and we suggest that you should speak to an insurance adviser rather than take these options.

Our experience shows many of the debt consolidation loans will have interest rates between 20-30% with an establishment fee and they would have also included an expensive payment protection insurance that would not be needed if you already have your own Income Protection Insurance.

Fast Loans Do Not Often Make Sense

The focus of most finance companies that offer debt consolidation loans is the speed of the application process. They advertise “1-hour approvals” and “online applications” and even the names focus on the speed of acceptance with Finance Now,Instant Finance and Easy Loans (NZ) all giving the impression that you can get your debts sorted out with the minimum of fuss.

Maybe speed is not the most important thing to consider!

You might want to consider taking a little more time to ensure that you get the best option which could save you a lot of money over a very short period of time.

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Negotiate Repayment Of Existing Debt

Often there can be some savings that you can make when repaying existing debt.

Any debts that have been handed to a collection agency like Baycorp or Veda are often easy to negotiate a discount if full settlement is offered.

IRD debts often include excessive interest charges and penalties and often a discount can be given if you are able to offer full settlement.

Most personal loans and hire purchase agreements included a payment protection insurance cover. You should be able to get a refund on the portion of cover that has not been used due to early repayment.

Talk to your mortgage broker and they can help to ensure that you can access any of these discounts – they can save you a lot of money and may provide a good reason to consolidate debt.

Mortgage Brokers Do Debt Consolidation Loans Too

Mortgage brokers speak to a lot of people who have had situations where cashflow issues and want to consolidate debt.

Most of the time mortgage brokers deal with home owners,or those who are about to buy their first homes; however most mortgage brokers know a lot about debt and are typically the best people to talk to when you want advice on the best options for any given situation.

Most mortgage brokers will be able to show you the true costs of a debt consolidation loan and then it is up to you to weigh up your options. Mortgage Link is one of the best mortgage brokers around and your mortgage adviser knows how to get you the best options for deb t consolidation and show you how to structure your debt to help you pay it off faster.

Before you try the “fast” options,consider if you would be better to take a little more time to meet with a mortgage broker in person and ensure that you get a suitable debt consolidation loan.

You have a choice – you can use a mortgage broker or go to the bank yourself.

A mortgage broker should be able to give you better choice of lenders,better advice on how to structure your mortgage and knows how to make sure you get the best deal.

In most instances you can find a mortgage broker that gets paid by the bank and therefore are a free service to you,so ask yourself why you wouldn’t use a mortgage broker?

Battler kind 2: “The Misdirected” (Component 3)

By John Sage Melbourne

Let’s consider unsuitable generalisations from personal experiences.

Along with being misguided by others,battlers might also misguide themselves. This can happen when they create unsuitable beliefs and also mindsets from their personal experiences with cash,spending and also producing riches. For example,rather than seeing times of financial hardship as a ‘get up telephone call’ to find out just how to be a lot more monetarily qualified (and also hence equipped),they might formulate a view that riches development is challenging and also not really feasible for the average individual like themselves (hence coming to be dis-empowered). If offered sufficient credence,this type of over-generalisation can become a full idea system that will certainly misguide and also misguide their future assumptions,decisions and also mindset toward riches development.

Interestingly,the ability for someone to wrongly generalise from personal experience can happen whether that experience was viewed as good or poor at the time. It’s easy to understand just how someone can create unsuitable beliefs and also mindsets from a poor financial experience,yet just how does it function when the experience was positive?

An instance of someone producing an unsuitable generalisation from a favorable financial experience might happen if they had made a big quantity of cash very quickly from a risky investment,offer,or service venture. And also allow’s state,for this instance,that their lucrative returns really had even more to do with good luck than astute preparation. Because he or she might not possess the financial proficiency required to discern the distinction between good financial decisions and also sheer good luck,they might wrongly end that the risky technique they utilized was a good one. In addition,that idea is enhanced in their mind by seeing the high returns they’ve “accomplished” by utilizing such a technique.

Subsequently,they might wrongly decide that the technique suffices to utilize once again in the future. What eventually happens is that they will certainly end up losing even more cash than they win,and also their funds will certainly at finest do like an unpredictable roller coaster,or at worst they will simply maintain losing an increasing number of cash with each “offer” they pursue. The ultimate outcome is that they will certainly continue to fight with their financial standing and also never ever really get ahead.

Comply With John Sage Melbourne for a lot more expert residential property investment recommendations.

Along with good and also bad experiences,someone might also create unsuitable generalisations from no experience in any way! For instance,someone might believe they are unable to spend or feel it is much too frightening to spend simply since they have never ever done it previously. For many individuals,much of their restricting beliefs,perspectives,assumptions and also mindsets regarding producing riches in their lives originate from not just knowledge-based lack of knowledge yet also from experiential lack of knowledge. Once someone begins to do something about it they will certainly get experience. From experience can come understanding,and also from learning can come self-confidence. Confidence can then lead to even more activity and also the cycle then builds momentum. Numerous Misdirected Combatants can hold unsuitable assumptions and also beliefs regarding riches development simply since they have never ever done something about it to learn the reality of just how it operates in actual practise.

Moreover,someone can also create unsuitable generalisations regarding riches development from vicarious experiences of others. Numerous battlers are misguided by their own assumptions,inferences and also dreams regarding the investment experiences of friends,household,and also also complete strangers. For example,a battler might hear a tale from a pal of just how an investment situation had failed. The battler might then envision just how distressed they would feel if they were in that very same situation.

Ultimately,they might wrongly end that all such investments are bad and also unwanted. As opposed to gaining from the tale regarding just how to be a smarter financier,rather they dis-empower themselves by producing an unsuitable generalisation from their vicarious experience of another person’s investment error.

To read more regarding financier kinds,visit John Sage Melbourne here.

Combatant kind 2: “The Misdirected” (Component 5)

might}bemisguidedintheirstrategytoachievingeconomicwealthisthedegreetowhichtheyholdnegatingbeliefsregardingmoney,investingandwiderange.Contradictingideasproducementalstressaswellasdisputewithinthebattlerandalsomakeittoughforthemtocometobeconsistentaboutattainingfinancialsuccess.


Forexample,ifsomeoneknowinglyorunconsciouslybelievesthesecrettoobtainingabundantistostriveandalsosavewhileattheexactsametimetheyalsobelievetheabundantobtainricheraswellastheinadequategetpoorer,afterthatheorshelivesinaneverlastingpredicament.Ononehanditappearstheyrequiretostriveaswellassavetogetabundant,butgiventhattheyarenotalreadyrichalltheycandoisgetpoorer.

Anadditionalexamplewouldcertainlybeiftheythought(consciouslyorunconsciously)thatinordertomakemoneyhonestlyyouhavetoearnitwhileatthesametimeadditionallythinkingforsomebodytoobtainrichtheyneedtohavetippedonagreatdealindividualsontheirmeansup.Thismaycausethecombatanttooncemorestriveinordertohonestlygaintheirloanhoweverasquicklyastheybeginmakingasuitableearningstheymayunconsciouslyunderminethemselvesinordertoavoidbecomingoneofthoseabundantbastardsthattiponindividuals.
Intheveryfirstexample,thebattler‘snegatingideasimmobilisehim/hertostaywheretheyarewiththeirfinances.TheyarecaughtinaCapture22wheretheyaredamnediftheydoanddamnediftheydon’t.Inthe2ndexample,thebattlerhastheabilitytogettoamarginaltomoderatedegreeofsuccessupuntilaself-sabotagingmechanismkicksintorestricttheirmonetarydevelopment.

Anothervariantofnegatingideasoccurswhenthecombatantisexposedtothemethodsofwiderangeproductionandinvestmentreasoning,Asanexample,abattlermaybelievethatitmisbehavestobeindebtaswellastooweindividualsmoney.Theythenaretoldthatinordertoinvestintelligentlytheyneedtoborrowaswellasmakeuseofotherpeople‘scash(OPM).Ortheymightbelievethatittakesmoneytogenerateincomeandafterwardstheyaretoldthattheycanpurchasebuildingusingnocashoftheirown.
Howdotheymakesenseofthesecontradictingbeliefs?Regrettablyforthecombatant,theyarealotmoreinfluencedbytheoldideastheycurrentlyholdinsteadofthebrand-newideasbeingintroducedtothem.Typically,theywilleithertotallydismissthebrand-newbeliefsaswellasconsequentlygetridofthecontradiction,ortheywillcertainlyofferthebrand-newideasminimalcredencewhilekeepingconvictionfortheirexistingideas.Inanycase,thebattlerstillcontinuestobewheretheyarewiththeirfinancialstatus.

ComplyWithJohnSageMelbourneformoreskilledresidentialorcommercialpropertyinvestmentsuggestions.

RecapoftheMisdirectedBattler


UnliketheIgnorantCombatantwhodoesnotinvesttocreatewiderangemerelybecausetheentirelocationofwealthproductionisusuallyoutsidetheireverydayunderstanding,theMisdirectedBattlerdoesnotspendtocreatewealthbecausetheirpointofview,mindsetandalsoideasregardingrichescreationarebasedonwrongpresumptions,wronginfoaswellasdefectiveproperties.

AmajorsecretfortheIllinformedCombatantistobecomeun-misguided.Toachievethis,theyneedtoagreetounlearneveryoneofthemisinformationtheyhavebeenconditionedtothinkovertheyears.Thisrequiresacombinationofself-awarenessofone‘sownconditioningandalsotheassistanceandsupportofaexperiencedwiderangetrainaswellasadvisor.

Things To Consider Before Going For Debt Consolidation

Debt consolidation occurs when one takes a loan that will cover payment of many other loans that have been taken by merging these debts into one. Usually loans taken for debt consolidation are higher in value than the total value of the debts to be consolidated. This is mostly done with an effort of secure this one merged debt by taking a collateral asset against them. Unsecured debts may lead to debt consolidation as a result of trying to compact them into one secured loan against collateral which will on the other hand lower the interest rate charges. It is true to say those debtors with secured debts will have lower interest rates when they have attached a property as security against their loans unlike the unsecured debts.

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When a person uses debt consolidation,their debts are paid off much faster while incurring lower interest rates. However,one might make a very dangerous move when trying to consolidated debts especially when one has no or very little knowledge about debt consolidation. You might think that you have done a great achievement after consolidating debts but the truth is that it might even land you into greater problems. It is good to face the fact that debts will still be there even after consolidation and will even tend to create a bigger burden which does not give you a reason to feel satisfied. When you go for consolidation,have in mind that you have only stopped the debts from spreading.

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Before even under taking any debt consolidation,it will be best if you have a plan on how to repay back the consolidated loan. If you do not have any strategies on how to repay back the loan,it will take you a longer duration and also cause you to pay more interest due to the extended repayment time. Talk with debt consolidation consultants for direction and advice on whether it will be a good idea to consolidate your debts. Consultation is important since you will be aware of what you are doing without taking any risks. These counselors will also give you advice on how to improve your financial situation.

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The review of all the above facts show that when you consolidate debts you will make lower payments but will take longer period of time which will not make a big deal of different since you will pay more interest on the loan. The only fact is that you will not have a hard time paying these debts off after consolidation since you will make payments to only one lender. If you had many lenders,you would have problems paying off to the lenders. Before undertaking any step towards debt consolidations always talk to experts who will give you give you advice on others ways of debt payment. You can compare these methods to debt consolidation and choose the best method.

What is a Debt Consolidation Calculator?

What is a debt consolidation calculator?

If you are undertaking a debt consolidation loan,then,these debt consolidation calculators are instruments of great utility. Debt consolidation calculators require your debt amount to tell you:

  1. if you should collate your debts in the first place,
  2. the kind of monthly payment plan which would suit your pocket,
  3. The duration within which you will be able to eliminate your debt.

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Some amount of permutation and combination enables you to try out different interest rates but the debt consolidation calculator seeks out a debt consolidation plan optimal to your profile.

Surfing the Internet for debt consolidation:

Going online for debt consolidation calculators displays mind boggling results including manual debt consolidation calculators. Most financial lenders have their own variants of the debt consolidation calculators. On many websites you may need to input your e mail address so you can be contacted. It is not mandatory to associate yourself with any of the search results. Undertake comparison shopping for the best quotes.

What are free debt consolidation services?

Debt consolidation loans are widely recognized as most effective ways to eliminate escalating consumer debts. There are also free debt consolidation services offered by agencies with low or absolutely no service charges,low interest rates and small monthly payments enabling greater savings. Any requirement regarding addressing your creditors is also looked after them.

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Using the debt consolidation calculators:

Debt consolidation calculators tell you if it is feasible to collate debts,whether it makes sense to make a single payment per month to repay debts,the kind of time period within which you can improve your credit score and eliminate your debt,and how much will retiring your debts cost your pocket.

  1. To enter data in a debt consolidation calculator,input all debt amounts in the given fields. If you are unsure,check the statements received from your creditors.
  2. Enter the exact principal amounts,interest rates and monthly outflows.
  3. The final two columns will be filled by the calculator so leave that.
  4. Once the debts you want to collate have been input,click on “Compute Current Debt Cost” button.
  5. Subsequently,enter the debt consolidation loan interest rate,term of repayment and service charges or fees levied. Now,click the “Compute Consolidation Loan Costs” button.
  6. Check that you have entered data in the four left-hand fields for all debts.
  7. Ensure the data is all numeric and decimals.

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