Loan Debt Consolidation
Have you got multiple outstanding debts and you’re only just managing to get by? Don’t continue struggling this way, there are some solutions. You can consolidate your debt into one place, and make one manageable repayment instead of multiple ones that are difficult to keep track of!
Have you thought about debt consolidation loans? Maybe you have, or perhaps you haven’t. We’re here to help you get yourself back on track by finding the best debt consolidation loans to get you back on your feet, so you can start living life again.
What are debt consolidation loans?
Ultimately, they are loans that you can borrow, that allow you to pay off all your outstanding debts. That way you only need to focus on paying off the one individual loan. Its takes away the pressure of having to make multiple repayments with multiple interest rates. With us, you can get the best debt consolidations loans Australia offers.
Where can you find debt consolidation?
You can find debt consolidation loans from anywhere in Australia when you apply online. You will be able to get them with loandebtconolidation.com.au very soon!
Who can get debt consolidation loans?
Anyone can get them! You just need to be at least 18 years of age, be an Australian citizen or permanent resident, be receiving a regular income and not be declared bankrupt. However, the amount you can borrow will depend of your personal financial situation.
Can you get debt consolidation loans for bad credit?
You can, but the amount you are able to borrow might be limited. We do assess applicants on a case by case basis, so it will depend on your individual situation. If you have bad credit, a debt consolidation loan is not off the cards. However, borrowing larger amounts to consolidate debt will not be possible with a bad credit rating.
Why are they useful?
Debt consolidation loans can be incredibly useful when you need to pay off multiple debts. If you have more than one credit card and a personal loan, it means that you must make multiple repayments and this can be incredibly overwhelming and expensive. Whereas, taking out one debt consolidation loan allows you to pay off all your debts so you only need to make one payment with one set of fees.
When should you consider a debt consolidation loan?
There are a few key points that might help you decide whether debt consolidation loans are the right option for you. You might consider getting one:
- If you are having difficulty paying your monthly debt repayments
- When the interest rates of the debt consolidation loan are less than what you are paying to all your creditors combined
- If you are feeling stressed out and disorganized trying to keep up with the repayments, causing you to build up late fees
- If you qualify to get a debt consolidation loan
Are there government debt consolidation loans?
The Australia government doesn’t provide personal loans per say, but it does offer various other solutions. For instance, you may be able to get Centrelink assistance, that you are entitled to, which might help you to manage your financial situation a bit better.
Though, the government does offer legal agreements if you are in an unmanageable debt situation. These are called debt agreements and are legally binding documents that pay off the creditors that you owe, therefore releasing you from your debts with them. You then pay back the debt to the Government like you would normally repay a loan, though this solution does have limitations and will have a negative impact on your credit score and your ability to borrow credit in the future.
The Government also offers free financial advice that is available to anyone. Here you can speak to a professional that should be able to point you in the right direction.
You can also get low income loans from some non-for-profit organisations. You could get a no interest loan scheme (NILS), which is a loan designed for low income earners.
What’s the difference between a debt consolidation loan and a debt agreement?
A debt agreement is a way of consolidating debt, and is an agreement between you and the Government. A debt consolidation loan serves the same purpose, though you don’t have the same obligations that a debt agreement entails. With a debt agreement, this will be recorded on your credit report as an act of bankruptcy for 5 years from the time that your debt agreement starts. You can only enter a debt agreement when you have become insolvent, which means you cannot afford to pay your debts when they are due.
It also means that it will affect your ability to obtain future credit, whereas a debt consolidation loan does not. In fact, debt consolidation loans can improve your credit rating by showing that you are able to pay off debt, and if you are regular with your payments this is surely to improve your credit rating.
Nevertheless, taking out a debt consolidation loan will be costlier than a debt agreement, as there will be fees associated with the loan.
What should you watch out for with debt consolidation loans?
Many people who take out debt consolidation loans are in that position due to poor spending and financial habits (though this is not the case for everyone). Thus, the important thing to consider with this loan is that it will not solve your financial troubles if you do not make changes to your lifestyle.
The main thing to watch out for is to not get yourself into a more severe situation than before taking out the loan. Debt consolidation loans used in the right way, can help you to turn your finances around.
At the end of the day, debt consolidation loans can be incredibly useful, and can help you out if you are struggling with debt. Though it’s important to take the time to really consider whether it’s the right option for you. You will be able to get debt consolidation loans with us shortly!