Many people turn their thoughts to consolidation when the wheels are about to fall off their financial planning, or rather, lack of planning. However, your chances of getting this type of loan are diminished if you are falling behind on payments — so you need to get things back on track first.

Try to pay off some of your smaller accounts first, so that when you approach the bank, they can see that your instalments are affordable.

So how do you pay off debt sooner? Well, you need to go on a savings spree: cut back on entertainment, cell phone bills and junk food. Use the savings to pay of some of those smaller accounts first, then start paying more on the bigger debts.

Reduce your expensive debt

Consolidation can be very effective if you have a number of high interest-rate loans. One of the best ways to reduce your interest payments is to take out a home equity loan, although nowadays most new bonds are ‘access bonds’ which means that if you have built up equity in your home, you may borrow against that value.

For example, let’s say John Jacobs has a bond of R600 000 and a few years down the road he has paid off R100 000 capital, he could use that equity to pay off more expensive debt.

Try to pay off some of your smaller accounts first, so that when you approach the bank, they can see that your instalments are affordable.

So how do you pay off debt sooner? Well, you need to go on a savings spree: cut back on entertainment, cell phone bills and junk food. Use the savings to pay of some of those smaller accounts first, then start paying more on the bigger debts.

Reduce your expensive debt

Consolidation can be very effective if you have a number of high interest-rate loans. One of the best ways to reduce your interest payments is to take out a home equity loan, although nowadays most new bonds are ‘access bonds’ which means that if you have built up equity in your home, you may borrow against that value.

For example, let’s say John Jacobs has a bond of R600 000 and a few years down the road he has paid off R100 000 capital, he could use that equity to pay off more expensive debt.

Consolidation can be very effective if you have a number of high interest-rate loans. One of the best ways to reduce your interest payments is to take out a home equity loan, although nowadays most new bonds are ‘access bonds’ which means that if you have built up equity in your home, you may borrow against that value.

For example, let’s say John Jacobs has a bond of R600 000 and a few years down the road he has paid off R100 000 capital, he could use that equity to pay off more expensive debt.

Try to pay off some of your smaller accounts first, so that when you approach the bank, they can see that your instalments are affordable.

So how do you pay off debt sooner? Well, you need to go on a savings spree: cut back on entertainment, cell phone bills and junk food. Use the savings to pay of some of those smaller accounts first, then start paying more on the bigger debts.

Reduce your expensive debt

Consolidation can be very effective if you have a number of high interest-rate loans. One of the best ways to reduce your interest payments is to take out a home equity loan, although nowadays most new bonds are ‘access bonds’ which means that if you have built up equity in your home, you may borrow against that value.

For example, let’s say John Jacobs has a bond of R600 000 and a few years down the road he has paid off R100 000 capital, he could use that equity to pay off more expensive debt.