Plenty of information is available about debt consolidation from numerous sources, and not all of them may be accurate or objective.
One common myth is that a consolidation loan does not come with additional fees, but the vast majority of lenders do charge a certain percentage of the total amount owed to a client’s creditors.
However, the main risk factor was exposure to the exchange rate since there was no running coverage for the liabilities due in foreign currency.
In 2011, at the initiative of the new SAO management but before the new SAO Act was enacted, the mandate of the supreme state audit authority was extended to business associations owned by local governments, and the first company to come under the micro scope of the auditors was the BTC.
Assessing the financial management and audit processes of local governments up to 2010, it is important to stress that the central regulation regarding the limitation and ration alisation of debts was also unable to fulfil its function.
Provided the borrower pays the balance in full before the introductory rate expires, he or she will save a noticeable sum on the interest and become debt-free in a shorter time frame.
Another form of debt consolidation can apply to personal loans or home equity lines of credit.
Since the local governments took, that is, were entitled to take liabilities that exceeded their financial capacity, central debt management was inevitable because a large number of local governments going bankrupt would have caused unpredictable problems in public finances.
In simplest terms, debt consolidation involves rolling several outstanding balances into one account for easier repayment.
A first step to consolidation is a meeting with a knowledgeable financial advisor or credit counselor.
Clients are expected to bring records of all outstanding debts they wish to consolidate, including their most recent statements from their credit card companies or other lenders.
Provided a borrower can pay off the entire consolidated balance by the deadline, he or she can take a significant step towards becoming debt-free.