This is a one-time fee deducted from your loan proceeds.
You may see an initial interest rate when you apply, but a higher rate when you’re quoted.
If you’re one of them, you’re probably paying way too much interest for your debt than you should.
Cape Town - Over-indebted consumers have various options to choose from to help them on their road to financial freedom, one of which is debt consolidation.In a nutshell, debt consolidation involves taking out one single loan to settle all your other loans.So, do your homework by shopping and comparing interest rates with multiple lenders.Not everything over there is fully functional yet, and the internal links still point to this blog, and will for the indefinite future.If you want to pay off your personal loan ahead of schedule, most don’t charge you a prepayment penalty.
However, most personal loans come with an origination fee that could range from 1% to 10% of the loan amount.
Debt consolidation merely replaces current debt with different debt, and is therefore not a solution for over-indebted consumers.
In order to get on the road to financial well-being, consumers need to spend less, save for emergencies and pay off their debt with their own money.
Unfortunately, many consumers see the “zero” balance on their credit card as a green light to go spend more.
This will only make things worse.• It does not reduce your debt.
The amount you can borrow depends on the lender, your credit, and your income.