Consolidating car loan home loan

In recent times, many debtors are juggling between many loans like home loan, car loan, personal loans and credit cards.

The high cost of living, especially in the UAE region and the upscale lifestyle causes people to spend beyond their means.

The tenure, rate of interest and benefits can vary but the consumers believe it helps them begin their journey of a debt-free life.

Every bank and financial institution have its own eligibility criteria which needs to be checked individually. Debt to Burden ratio [DBR] should not exceed 50 percent2.

When the debt goes beyond control, they approach banks or financial institutions for a debt consolidation loan.

An option for you to consider is consolidating your debt by refinancing your home loan.Keep in mind, though, while your monthly payments will be lower, in the long term you may pay more interest if the debt is extended over a longer period of time.Note: No Discover Financial accounts may be paid off with this debt consolidation.Debt consolidation is a tool to help you get your loans under control.It can help you minimize the number of installments and in certain cases reduce the interest rates too. You have to repay what you have borrowed and with 100 percent dedication, you can use this tool to reach a debt free existence. Consumers with multiple credit cards and no savings to repay them should primarily consider debt consolidation as this can significantly reduce the interest rates.

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