Does it make sense to remortgage for Debt Consolidation?
A. Absolutely. We have always advocated that there are two basic considerations when it comes to debt consolidation. Ideally, you should aim to answer yes to both. Anyway, here are the two things you need to ask: • Will consolidation reduce my monthly costs? Ideally, consolidating debt should allow you to improve your monthly cash flow. Since this is usually the primary objective of anyone looking to consolidate, it is usually achieved. However, there are factors that contribute to cash flow either remaining the same or even being reduced. Why would someone want to consolidate if it means higher payments? That’s a good question, but if the collectors are badgering, then it might simply be for the reason of peace and quiet. When you remortgage for debt consolidation you are usually able to drastically improve monthly cash flow because remortgaging allows for a longer amortization (whereas unsecured debt consolidation loans are usually repaid/amortized over much-shorter periods). As well
