Financial planning not only involves finding tax-effective strategies for running or managing your finances but also involves how you plan to sell investments, exit a business or make your savings last to enjoy a secure and comfortable retirement. It is never too early to start planning for your retirement, however, working out how much you will need to retire on can be complicated. At Peter Radford Tax, accounting and tax agents, we help clients set up and put their retirement plans into action.
Debt consolidation is a form of refinancing which involves taking one larger loan out to pay off multiple small ones. Although this might make managing repayments easier, you may end up paying more money interest rate or fees.Â
There will be companies that make offers which are too good to be true. If you feel that an offer is unrealistic and the company is promising that they can get you out of debt no matter what your situation is, you should reevaluate using their services. Don’t trust companies that:Â
Are not licensed
Ask you to sign blank documents
Refuse to discuss repayments
Rush the translation process
Won’t put all loan costs and interest rates in writing before you sign
Arrange a business loan when you only need a consumer loan
The goal behind the consolidation is to manage your payments, not create more fees and interest for you. Therefore, before signing onto an agreement, check how consolidation compares with your current fees and interest rates altogether. Also, take into account expenses and penalties associated with your existing loans and whether you will have to pay more money for paying off your loan early. If the expenses work out to be more, it might not be worth going through this entire process.Â
Debt consolidation isn’t the only option if you’re struggling with repayments. Other options may be available which are more suited to you. You should discuss with your mortgage provider, credit provider or financial advisors to determine if there is anything that can be done.Â
