Real cost of consolidation
Tuesday August 05 2008
DEBT consolidation may seem like a good idea for consumers juggling a mortgage, personal loan and a credit card, but the Financial Regulator has warned homeowners it will cost more in the long term.
Debt consolidation combines all your loans into your mortgage and needs careful consideration. Calculate consolidation costs. The new loan will last much longer than the original loans, costing more in interest.
The mortgage calculator on itsyourmoney.ie can help you figure out how consolidation will affect your monthly repayment and how much interest you will pay overall.
Under the Consumer Protection Code, a provider offering a consolidation loan must give a written comparison of the total costs of this new loan, compared with your existing loans.
