16 Jul How to Consolidate Your Debts Like a Pro
Are you struggling to keep up with your mortgage repayments and credit car debts? You can opt to roll your debts into one. Here’s how to do it.
Having multiple loans mean there are different bills with varying due dates to remember with corresponding penalties if you pay up late. Consolidation loans can be a useful tool for managing multiple high-interest accounts.
What is Debt Consolidation
A debt consolidation loan combines numerous unsecured debts into one single debt with one payment, one creditor, and one interest rate. This helps to reduce the separate fees and interest you are paying. If you are tired of managing your debts with multiple creditors, fluctuating interest rates and with different payment types, debt consolidation could work for you.
How to consolidate your debts?
If you have a range of debt you want to consolidate, such as personal loan and credit cards, you should first work out how much you’re paying across your accounts. You also need to ensure you can exit your accounts without paying fees. Once you’ve done your due diligence you have a few options to consider.
- Debt consolidation personal loan – allows you to borrow a lump sum which you can use to pay off your credit accounts, credit card, and personal loan or otherwise.
- Balance transfer credit card – involves you applying for a balance transfer credit card and transferring your existing card debt to that card.
- Mortgage refinancing – If you have a mortgage you also have the option of consolidating your debt to repay it with this loan.
Is it for you?
If you have more than one loan, it may sound like a good idea to roll them into one consolidated loan. However, as your mortgage broker, I can analyse your personal situation and assess the most suitable options to assist you in reducing your debt.
It’s important to determine whether you can afford the repayments on a debt consolidation loan before you apply and if taking one out will put you in a better financial position rather than a worse one.
Let’s find the right debt consolidation option for you.
Don’t lose yourself to debt. I may be able to guide you to get your finance back on track. I can help you find the answer to these questions:
- Will you be eligible?
- Will there be an exit fee or penalty fee?
- What is your credit like?
- Is this a good option for your current financial situation?
The best way to consolidate your debt will depend on a number of factors, that’s why it’s important that you equip yourself with the right knowledge so you will be able to make an informed decision.
Credit Representative Number 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.