Consolidate Debt Using Property

Consolidate debt using property

Advantages

Pay off all your short term accounts, e.g., clothing, credit cards or even your motor vehicle.
Pay one instalment into your bond, and no other accounts!
Provided there is sufficient value in your property, an application is made to the bank for personal reasons and does not necessarily have to be property related.
More disposable income each month in your pocket.
You have a choice to settle the additional monies you took for personal reasons in a shorter period than the bond term and thereby restore your home loan to its original balance. Feel free to try our Bond Calculator to see how this works.

Disadvantages

There is always the temptation to pay the personal portion over the longer term of your home loan, instead of paying the additional funds you have taken over a shorter period, e.g., 5 years.
After you have settled your accounts using bond finance, there is yet another temptation - re-apply/revolve for the credit on your former accounts and credit cards, and you’re back to square one again!
Usually, the bank will have to register a first or further bond over your property before they advance funds, and this can take up to 3 -5 weeks before you get the approved loan paid to you.