When is a good time to consolidate debt
January is a good time for new years resolutions, it’s like a clean slate for the coming year, allowing you to brush aside the mess that may have built up over the previous year and start afresh. If you’re thinking of getting your finances on track in the coming year, it’s best to take a look at your current situation. If you have various debts, such as credit cards, personal loans and store credit, it’s worth considering consolidating these debts into a single debt consolidation loan that will cost you less interest.
If you are a homeower, it is best to consider taking action sooner rather than later. This is because house prices are set to fall in 2009. With house prices already having fallen substantially in 2008, you may well find that you are already in negative equity. If you do still have equity in your property and wish to remortgage or consolidate your debts using a secured loan, it would make sense to start this process as soon as possible, before house prices fall further.
If you are not a homeowner, then this does not matter to you. However, you will find that just as the shops have January sales to clear winter stock, in preparation for the new season, so do lenders. Clearly they don’t have stock to clear, but they do like to jump on the marketing band wagon, and they do this by releasing new rates in January, and in some cases by holding a January sale, whereby they slash rates on new lending. This is done simply to boost lending volumes for the month, so it remains to be seen whether it will happen in January 2009, given the ongoing financial turmoil we’re seeing as a result of the credit crunch.
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