Don't consolidate loans without reading this

HERE ARE THE GOLDEN RULES FOR LOAN CONSOLIDATION

1. GET LOTS OF QUOTES - we're talking about 100's or 1000's of dollars so if you have to spend a day doing it

it will be worth it in the long run.

2. UNDERSTAND THESE TERMS -

SECURED LOAN - A secured loan means that you are securing the bank will get there money.

If you put your house or car up as security and default on your payments the bank can take away the security you but up - they can sell your house or car.

UNSECURED LOAN

You do not put any security up against the loan.

3. SO WHY WOULD YOU GET A SECURED LOAN?

Gennerally secured loans will have a better APR(Anual percentage rate) than unsecured loans meaning you will pay less interest. So if you are confident you can meet the repayments securing you consolidation loan might be a good idea.

4. FIND OUT IF THERE ARE EARLY REPAYMENT PENALTIES

It might not seem like it at the moment but you never know whats round the corner if you suddenly find yourself in a position to repay your loan early you might find that the bank charges you just for doing so, crazy but true.

5. DON'T GET MORE THAN YOU NEED

Fair enough get an extra $100 or somthing a treat yourself a bit but don't get $1000's it won't help in the long run. This is what Loan Companies rely on.

6. EXTRA INSURANCE ON YOUR LOAN

It would be unethical for me to advise you not to take extra insurance but make sure you find out EXACTLY what it does LOAN REPAYMENT PROTECTION is a great earner for banks. You could end up paying as much as 20% of your total loan value just in repayment 'PROTECTION'. Banks and building societies love to offer you 3 months free in the hope that you forget about it and carry on paying IF YOU DON'T WANT IT SAY NO, don't even have the free period.

6. APR

Get the lowest APR possible.

Follow these guidlines for consoldating loans and you will get the best deal and be back on track in no time

Add this page to your favorates to be sure you don't forget the rules.