Decrease in interest rates bodes well for debt relief
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 Following the recent announcement of a 1% decrease in the prime lending rate there is no time like the present to take advantage of this and take charge of your finances by consolidating your debt.
With the interest rate at a slightly improved 14% and with petrol and diesel prices at a lower price than they have been for over a year there is relief for consumers on a few fronts, but it will take more than these factors for consumers to be able to find their footing on stable financial ground again.
There are many people for whom these decreases are only of minor relief. If you are one of the majority who still find themselves struggling to meet debt repayments then you should definitely consider a means of improving your situation. A debt consolidation loan might be just the solution that you seek.
A debt consolidation loan is best described as when you gather up all of your debts, whether they be credit card debts, student loans, personal loans or even business loans and you place all of these debts into one large consolidating loan. The benefits to doing this are usually a much lower interest rate and also a lower monthly repayment. Lets take a look at a few options:
Home Equity Consolidation
One of the best ways to finance your debt consolidation is to use your home as collateral. This is known as a home equity consolidation and you will find you can get much lower interest rates for your debt consolidation than you would on a personal loan or credit card. If the bank feels comfortable because they have your home as security, in case you default, then they will offer lower repayment schedules over a longer time period, meaning you'll have access to more cash. With this cash you can pay off your essential bills and keep the wolves from the door. Home loan consolidations are very common and can really help improve your financial situation.
Get a personal loan
If you have a reasonably undamaged credit profile, you may qualify for an unsecured loan. You can go online to the various banks’ websites or pop into any branch of the bank of your choice (though it is always a good idea to start with your own bank as they have a record of your banking history) and apply for a personal loan that will allow you to consolidate your debt.
Negotiate better terms
Though you might not be successful with all of you creditors it is certainly worth a try and can easily be done by you. Phone anyone to whom you owe money and request an improved interest rate. Let them know the reason for your request and you might find that they have a sympathetic ear.
Another alternative
Or you can get help from an organisation like the National Credit Regulator (NCR), who is tasked with carrying out education, research, policy development, registration of industry participants, investigation of complaints, and ensuring enforcement of the National Credit Act. They can refer you to a debt counsellor who is trained to assist consumers with their debt crises.
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