Ways to Consolidate Your Debt and How It Works

01 Feb Ways to Consolidate Your Debt and How It Works

Juggling debts can be tricky. Consolidating your debts could make it easier to manage and potentially save you money on interest.

Ways to consolidate your debt and how it works

A well-managed debt can help you achieve your financial goals. However, when it gets out of hand and you find yourself juggling too many payments, it can be hard to keep track of everything.

You might often hear suggestions such as consolidating your debt which could possibly make your life a lot easier by putting it all in one place, but you still have questions. How exactly does this work? Are you qualified for this kind of service? I’ve previously talked about why you should consolidate all your debts.

In this case, I will share with you some general ways how to consolidate those debts and how they actually work. Just to give you an idea. See if these ways are apt for your situation. Remember, when it doubt, you can always consult with your trusted local mortgage broker.

Personal Loan

This option is for paying off large amounts of debt over several years at a comparatively lower rate.

How? Depending on your chosen lender, you can borrow up to a certain amount to pay off your credit account balances. Afterwards, you only need to pay one monthly repayment on the new loan.


Balance Transfer Credit Card

This is for people with a smaller amount of debt who want to finish the payment within a year.

How? Simply put, you have the option to transfer all of your debt into once credit card. Some lenders offer an introductory APR of 0% for the first year. So it’s really a matter of competitive and smart negotiation with the banks, lenders, and non-lenders.


Secured Loans

If you own a car or a home, this option might work for you.

How? You can potentially land on a comparatively lower rate if you borrow against the equity you’ve built on your asset such your car or your home.


Student Loan Debt Consolidation

Yes, it’s possible to consolidate your student loan.

How? Ask your mortgage broker for lenders in your area who specialise in student loan debt consolidation. That way, you can potentially get a competitive and efficient deal.


Debt consolidation may or may not work for your specific situation so it’s best to ask your mortgage broker for a free consultation before signing up for anything.

You can call Kirsten on 0408 081 082 or email her kirsten@soulfinancegroup.com.au for more details.



Credit Representative (486927) is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

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