24 Mar Why You Should Consolidate All Your Debts
People secure finance for a whole lot of various reasons – purchasing a home, owning a car, opening up a new business, among others. What the majority fail to consider is that getting out of debt seems to be more challenging and time-consuming than actually getting into debt. It is when debts and interests and fees start to pile up that you realise you no longer can handle your multiple loans.
Debt consolidation basically allows you to combine all of your debts into one. It’s not rocket science! To put it simply, you and your finance broker can put all of your debts together to come up with a single loan, a single interest rate, a single monthly mortgage payment. This enables you to minimise your monthly expenses and make your credit more manageable.
So, what’s the catch?
It might sound too good to be true because it basically eases you off the hassle. “Oh, for sure the payment will be much higher”—Not. As a finance broker, I advise my clients to consolidate their debts especially when all the debts tend to get out of hand. Depending on the kind of current loans you have, debt consolidation can help you reduce your interest and fees. Yes, it’s hard to get out of debt considering the refinancing costs and early payout fees for these existing loans. However, I analyse my clients’ current financial situation first before suggesting consolidating their debts. So yes, it might not be for everyone so it’s better to consult to your finance broker first. You might end up spending more so it’s better to have a financial consultation.
Debt consolidation is for you if:
- you have a hard time paying your monthly payments on time due to having too many commitments
- you have equity in your home
- you have a bad credit and a large amount of debt
There are actually lenders who specialise in these kinds of circumstances. While these are just some of the instances, it will always depend on the current financial situation of the client. I’m not going to bore you with any more of the jargons and technicalities. I have an idea! What if you shoot me a message via email or Facebook and that way, I can address your questions properly. 😊
If you think about it, debt consolidation can be a good financial step, especially for people who have multiple loans and are having a difficult time keeping up with the payments. You just need to find a good balance on where can you save more.
Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.
Corporate Credit Representative (486927) is authorised under Australian Credit Licence 389328.