The payment reduction may come from a lower interest rate, a longer loan term or a combination of both.
By extending the loan term you may pay more in interest over the life of the loan.
Your Annual Percentage Rate (APR) will be based on the specific characteristics of your credit application including, but not limited to, evaluation of credit history and amount of credit requested.
Your actual APR will be determined when a credit decision is made and may be higher than the rates shown.
It often involves a secured loan against an asset that serves as collateral, which is most, commonly a house (in this case a mortgage is secured against the house.) The risk to the lender is reduced so the interest rate offered is lower.
This is also a loan and means another debt in your account. It helps you consolidate your other debts, and thus to bring down the interest rates as applicable.
The interest rate is fixed for the life of the loan.Debt consolidation entails taking out one loan to pay off many others.This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan. Using one loan to consolidate your debt can solve your problems. When you take loans from many lenders, you have multiple debts. This also increases the risk of defaults and you have additional pressure of repayments.
Amongst many other debt solutions, Debt Busters can help you with debt consolidation in South Africa.