Don’t let debt take hold of you
Close to 70% of all Australian’s have admitted to feeling the sting of financial pressure and debt. If you are one of them, you will realise how disruptive debt can be in your life. Thankfully there are certain measures you can take when debt first becomes a problem to prevent it from spiraling out of control. A Consolidation Debt Loan is one of the first things you can do to take control over your finances.
What is a Consolidation Debt Loan?
A Consolidation Debt Loan is a special loan offered by most banks and financial institutions. It is a loan with the purpose of paying out your existing loans leaving you with one easy to manage repayment. While it might just seem like you are moving your debt from one bank to another with a Consolidation Debt Loan, it has many benefits.
By paying out multiple loans, you are getting rid of the separate interest rates which will accrue over time so you immediately reduce the amount of your debt and get some extra cash in your pocket for weekly expenses. It also cuts out the fees for each loan account which will save you money over time. Lastly, having just one repayment to think about makes things much easier to manage and you won’t have to worry about missing it.
Consolidation Debt Loans for Bad Credit
By the time people look at applying for a consolidation debt loan, they are often already having trouble with debt. And for some, they might have defaults or judgements on their credit file. Consolidation Debt Loans are an opportunity for people to avoid bad debt, but through most major banks, they aren’t available to people in bad debt. But there are ways out of this vicious cycle.
Positive Solutions Finance is a company which specialises in helping people with bad credit find loans. It doesn’t lend money itself, but it does have a number of non-conforming lenders on board who are happy to give people a second shot at making their money work for them.
Non-conforming lenders have a different set of criteria when looking to lend people money. They take into account your recent saving, spending and earning activity rather than look straight at your credit file.
Before you apply for a Consolidation Debt Loan
A Consolidation Debt Loan might seem like the perfect way for you to get your finances back on track but there is something you must consider before you commit to the loan. While banks are no longer allowed to charge exit fees, some loan contracts have term and conditions written into them which allows them to penalise you if you pay out the loan early.
There might also be account and transfer fees involved in turning the money over into the new loan. Before you go ahead with a Consolidation Debt Loan, read the fine print and do some research.
It’s best to calculate how much money you will save with your new loan and how much it will coast you to set your consolidation loan up. If the savings don’t speak for themselves it’s best to look at other ways of debt relief.
For more information on Debt Consolidation through Positive Solutions Finance or for other debt relief solutions Talk to an Aussie Who Caresâ„¢. Contact Debt Rescue today.