One of the dangers when people refinance because they need to consolidate some debts is that they may end up paying for an asset such as a car well beyond the life of that asset.

As an example, if the debt consolidation is to replace a personal loan for a car that has a likely life span of say 5 years, then the last thing that you want to do is end up paying for that car for the next thirty years but this is what will happen if you do refinance for debt consolidation purposes and do not adjust the amount that you are paying.

Find out how much extra you need to pay in loan repayments to pay off the amount being consolidated over a shorter period. The difference in loan repayments may not be that significant but the interest savings that you will make over the life of the loan will be.

We can provide this information so please do not hesitate to ask.

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