Debt Expert - Ian Wason


Posted by: Paul Mas | 2013/06/18 09:56

I want to consolidate my debt using the second bond option.

I want to find out if it is advisable to take a second bond and then use it to pay off my debts.

expert answer

Posted by: Ian Wason | 2013/06/20 13:43

If you qualify for an extra bond, and feel you can afford it, it could be a good option.

The interest rates will definitely be lower than that of your other, short-term debt.

The monthly instalment is also likely to be lower.

Just keep in mind that the bond repayment period is much longer (15-30 years) than for short-term debt (0-5 years) and you therefore will be paying back a lower amount over a longer period of time.


If you do go this route, make sure that you do use the money to close off those debts and not for anything other than that or else you will find yourself in a worse off position with the new long-term debt and the short-term debt outstanding as well.

If you have the affordability, you can always try to get a consolidation loan from one of the banks.

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers, and disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site.

comment on this story

Read the comments policy
Your comment has been posted and will appear shortly.
Please fill in the required fields.