Consolodating credit card debt alliance dating scandinavia

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A common mistake we see when clients want to restructure their debt for their credit cards, car loans or personal loans is that they also finance it over 30 years,” Bartels explains.

“Generally when you decide to finance something, it’s a good idea to structure the length of the loan to match the life cycle of the item.

Having a lot of credit card debt affects your credit rating in a negative way and consolidating credit card debt may be a solution for you.

If you carry a balance on your cards that is over 25% of your credit limit, you are penalized on your credit rating even if you pay your payments on time.

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But many borrowers make the mistake of restructuring their new debt the wrong way, says Trent Bartels, director of “When homebuyers are looking to purchase a property, they’ll often finance their home loan over 30 Years.

For example, if you purchase a car you might structure the financing over five years, because at the end of the five years you may consider selling the car.” If you were to structure the financing for your car over 30 years, it means that if you sell the car in five years time, you’ll actually end up holding onto the debt for an additional 25 years – which dramatically increases the overall interest you’re paying for the car.

“We recently had a client that came to us wanting to refinance their existing home loan, and they were looking to consolidate a credit card debt of ,500 and a car loan of ,000 at the same time,” Bartels says.

It uses a complex mathematical algorithm to come up with a score that predicts whether you are more or less likely to default on your next loan.

Consolidating your credit card debt, car loan or personal loan into your mortgage can be an effective way to reduce your repayments - provided that you restructure your debts the right way.

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