Debt Consolidation Loan
Are your debts becoming unmanageable?
It is common for people to take out multiple credit cards and loans, creating a financial burden and making it harder for them to stay on top of their bills.
Sound like you? Consider consolidating!
Rolling all your debts into one loan will make your life easier and minimise your stress.
Read on to find out how you can manage your debt today.
Want to consolidate your debt?
If bills are rolling in and you’ve lost count of how many accounts are due, it may be time to consolidate your debts into one loan.
Most people tend to ignore the state of their finances, until consolidation is no longer an option and they find themselves signing a debt agreement.
Applying for a debt consolidation loan will help you regain control of your financial situation and reduce your debt.
Approval criteria
Lenders have very strict criteria for debt consolidation loans. Taking out too many loans and have a multitude of unsecured debts is considered risky behaviour by the banks.
Because of this, banks will rarely depart from policy.
Generally, to get approval you must:
- Have made your home loan repayments on time for the last 3-6 months.
- Have made credit card and personal loan repayments on time for the last 1-3 months.
- Be in a strong financial position so that you have the ability to repay the loan.
- Have a stable employment history.
- Have a good credit history.
You may be entitled to borrow up to 90% of the value of your property. However, if you don’t have equity in real estate, you cannot consolidate debt.
If you can’t demonstrate any of the above, your loan will be declined by the lender!.
If you think you may have difficulty qualifying, speak to us today on 1300 889 743 or enquire online. We are the experts in getting difficult loans approved!
Speak to us!
Managing debt is easy if you get in touch with professionals. We know how the lenders will view your situation and we will submit your application with the right lender, to ensure that you get approval.
Don’t wait until your buried deep in debt. We can help you take control of your finances:
- We can order a valuation up front, for free.
- We know which lenders are lenient with debt consolidation.
- We know which lenders can accept missed payments and impaired credit (a higher interest rate will apply).
Interest rates
Standard discounted interest rates and completive loan packages are available.
We will try and get you the best rate possible for your situation, with a debt consolidation loan that suits your needs.
How long do I have to pay off my loan?
The choice is yours! Once you have consolidated your debts you can choose whether you pay off the debt over a 5 year term, to save on interest.
Or alternatively, you can include the debts as part of your home loan term over the 30 year period.
However, we recommend that you maintain your current repayments, with your new low interest rate. This will help you save money over the life of your loan.
Why consolidate your debt?
There are numerous benefits associated with debt consolidation. Some include:
- Making affordable repayments/li>
- Paying lower interest rates
- Managing your debt effectively
- Free yourself from stress about all of your existing debts
- Prevent creditors from pursuing you for funds.
- Protect yourself against the risk of bankruptcy
- Save yourself money!
- Improve your cash flow
- Live a better life!
Financial stress can put a large amount of pressure on families and is one of the leading causes of relationship breakdown. Australians spend a large portion of their income repaying debt!
You can minimise the interest you pay and maximise your quality of life when you consolidate your debt.
A typical debt consolidation
For example, If Peter has a mortgage, credit card debt and a personal loan, he will be making multiple debt repayments every month.
Each loan has interest and for the unsecured debt, that interest is very high.
By consolidating his debts into one loan, he now has one monthly repayment with a lower interest rate.
It doesn’t get any easier than that! He now makes great savings and can better manage his finances.
What is debt consolidation?
Debt consolidation is the process of combining all of your debts into one loan.
Most people choose to roll multiple forms of unsecured debt into their mortgage, creating one simple monthly repayment. Because you are only making one monthly repayment, you reduce the amount of interest you pay, making it an attractive option.
Type’s of debts you can consolidate
You can consolidate a variety of debt types. The most common include:
Credit cards:
Almost everyone has a credit card these days. People shop, travel and fund their lifestyle at the swipe of a card.
Did you know a credit card debt of $15,000 at 18.50% per annum will take 63 years to repay, if you make only the minimum monthly payment of 2% p.a!
If you consolidate your debt into your home loan you can pay it off faster and at lower interest rates.
You can also increase the term of your loan to that of the home loan, giving you more time to repay your credit card debt.
Or, you may wish to make larger repayments and pay it off faster, decreasing the amount of interest payable. The choice is yours!
Personal loans:
Do you have a personal loan? You may have taken out the loan to pay for a holiday, purchase a car or furnish your home.
Most people don’t know that personal loans carry very high interest rates, often with short repayment terms.
Rolling your personal loan into your home loan is extremely beneficial!
You can manage your loan, reduce the amount of interest you pay and have a longer repayment term.
Getting a debt consolidation loan
A debt consolidation loan provides a solution to your financial problems.
Best of all, you are not alone. We will guide you through the application process and submit your loan with a lender that can approve you!
There is no substitute for expert advice, so speak to us today on 1300 889 743 or enquire online and we can help you with your situation.
How do people get into debt?
With the cost of living rising, it is very easy for people to get into debt.
People often take on too many financial commitments and overspend on items and luxuries that they otherwise would not be able to afford without the use of a credit card.
More and more people are living beyond their means!
However, sometimes individuals manage their money responsibly, but fall into debt due to unexpected circumstances such as divorce, sickness and temporary unemployment.
If this sounds like you, then debt consolidation will work for you!
If you overspend, you will need to adjust your budget before consolidating. Read on to find out more.
Have you consolidated debts more than once?
Do you spend more than you should? If you have irresponsible spending habits, you will need to change these once you consolidate your debt.
Where you have already consolidated and have taken on more financial commitments, the banks will view you as high risk.
They are unlikely to approve your loan and they will not bail you out! This will leave you to pay a huge amount at high interest rates.
Break out of this cycle and manage your finances today by speaking to Debt Fix, professionals in debt consolidation and management.
Loan fees
You may be required to pay Lenders Mortgage Insurance (LMI) if you borrow above 80% LVR.
See a debt counsellor!
If you are falling into debt, it may be helpful to see a debt counsellor.
They will educate you on ways to save, budget and plan out your spending, in line with your income.
The process that they put in place will help you manage your debt and prevent you from falling into bankruptcy or having to resort to a debt agreement.
Where this occurs, your credit file will be substantially affected.
Seek help and you can avoid future financial complications and stress.
Apply for a debt consolidation loan today!
Think you’re ready to consolidate? Call us on 1300 889 743 or enquire online. We are the experts in bad credit loans and can help you regain financial control through debt consolidation. Speak to us today!
