What is Debt Consolidation?
Debt Consolidation can improve your cash flow as it combines your debts into a single loan with one loan repayment.
If you want to improve your financial situation with Debt Consolidation, Debt Rescue can help. We provide a range of debt relief strategies to help you get out of debt. You can tailor Debt Consolidation to suit your specific circumstances but you must consider a number of factors before you go ahead. Our Debt Rescue Case Managers can talk through your financial position and customise a Debt Consolidation solution for you.
What are the Benefits of Debt Consolidation?
Debt Consolidation has many benefits when you enter under the right circumstances. It can:
Reduce your interest by paying out debts which have a higher interest rate.
Increase and improve your cash flow through one lower loan repayment.
Remove multiple excessive fees on your debts by consolidating into one loan.
You won’t have to stress about juggling numerous debt repayments.
Is a Debt Consolidation Right for You?
Debt Consolidation can be beneficial in the right circumstances. Before you consider Debt Consolidation you need to look at:
- The interest and fees for breaking any contracts on existing debts
- Interest charges on your new loan against the interest on your existing debts
- Comparing repayments on your new loan to what you are currently paying
- Setup and account keeping fees for your new loan
After taking these into account, you will be able to decide if Debt Consolidation is right for you.
What can be included in a Debt Consolidation Loan?
You can consolidate all unsecured debts including personal loans, credit cards and store credits. You can also consolidate bills for services you no longer receive, such as an unpaid bill from a phone that you no longer use.
Secured debts are when you secure the debt against an asset, such as property or a vehicle. These types of debt can be part of a Debt Consolidation if there is sufficient equity in the underlying asset.
Success Story: Ryan's Debt Consolidation
Ryan works full time and lives in a rental property in Wollongong. Ryan owns a car and has a number of small loans and credit cards, with debts totalling $8,200.
Ryan’s workplace recently changed its policy on allowing staff to work overtime and Ryan found without the opportunity for extra income, his debt repayments were becoming unaffordable.
He called Debt Rescue for help. Debt Rescue was able to refer Ryan to Positive Solutions Finance who matched him with a lender who offered Ryan a loan for $8,500.
Using this loan, he could pay off his existing debts, eliminating the high interest and account keeping fees. He was left with one reduced repayment for his debts.
How we can help you with Debt Consolidation
A Consolidation Home Loan uses the equity in your mortgage to pay out existing loans. This is achieved through a mortgage refinance. Refinancing your mortgage will reduce the interest you are paying on your debts, saving you money. If you are looking for a Consolidation Home Loan we can help reduce your repayments, saving you interest and improving your cashflow.
You don’t have to secure a Debt Consolidation Personal Loan against any property. A lender will lend money to you to pay out existing unsecured debts based on your income capacity to repay the loan. By combining all your debts into a new Personal Loan, you will reduce the interest you are paying on your debts, saving you money. We can help reduce your repayments, saving you interest and improving your cashflow.
How It Works
Our experienced Case Managers will make a suggestion on the best way to proceed. They can refer you to a number of consolidation and lending partners.
You can make the application through our preferred lenders. We will work to improve your financial standing before applying for a loan to improve your chances of approval.
Once your loan application has been approved, your existing debts will be paid out leaving you with a single manageable repayment.
Need Help with Debt Consolidation?
Debt Rescue can walk you through your consolidation options and recommend trusted lenders who can assist you.
Speak to one of our experienced Case Managers today. They will be able to asses your financial situation and point you in the right direction.