| If you have more than one loan, it may sound like a good idea to roll them into one consolidated loan. Having one loan usually outweighs the benefit of having a number of little debts and may reduce the amount of regular debt repayments, possibly allow you to take advantage of a better rate and simplify your debt commitments by having a single repayment. |
| Debt consolidation (or refinancing ) can make it easier to manage your repayments. But it may cost you more if the interest rate or fees (or both) are higher than before. You could also get deeper into debt if you get more credit, as it may tempt you to spend more. |
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| Here are some things to consider before deciding to consolidate or refinance. |
| • Make sure the amount you will be paying is less |
| • Compare the interest rate for the new loan — as well as the fees and other costs — against your current loans. |
| • Make sure you can afford the new repayments. |
| • If the new loan will be more expensive than your current loans, it may not be worth it. |
| • Remember to check for other costs, such as penalties for paying off your original loans early application fees, legal fees,valuation fees, and stamp duty. Some lenders charge these fees if the new loan is secured against your home or other assets. |
| • Beware of switching to a loan with a longer term. The interest rate may be lower, but you could pay more in interest and fees in the long run. If you chose to extend the new loan term longer that your current term/s the additional costs may be greater than the savings benefits. |
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| ** Our practice will not be liable for any damages suffered by third party by relying on this information as all the information has been supplied by the client solely and we have not audited any source of the documents, but we made sufficient enquiry** |