Put an End to Your Debts Today with a Debt Consolidation Loan
Debt is an unavoidable fact of life, but when you start racking up a considerable amount of bad debt, such as credits cards and personal loans, that’s when you need to start taking measures to improve your financial standing. This is where a debt consolidation loan can help make managing your debts easier, save you money and pay off your debts faster.
Debt consolidation is a financial strategy, merging multiple debts into a single loan that is paid off in weekly/fortnightly/monthly instalments. It is especially effective on high-interest debt such as credit cards and unsecured personal loans. A debt consolidation loan will reduce your monthly repayment by eliminating the interest rate on your existing debts. This debt relief option untangles the mess people face every month trying to keep up with multiple debt repayments. If you’re ready to turn your financial life around, Debt Rescue can help with a debt consolidation loan.
How Do You Consolidate Your Debts?
1. Consolidate Your Debts into One Debt Consolidation Loan
Consolidating your debts into one debt consolidation loan could save you money by eliminating multiple fees across multiple debts. If you find a loan with a lower interest rate than the one on your existing debts, you’ll also be paying less in monthly interest.
2. Consolidate Your Debts into Your Home Loan
One of the biggest benefits of consolidating into your home loan is having just one repayment to monitor, which can help relieve you of debt-free and make managing your finances easier. Generally, interest rates of home loans are lower than other lending options, so if you roll all of your debt into your home loan you will pay less interest each month. However, you should keep in mind that you may end up paying more interest in the long term – home loans have a longer loan term, which means more monthly repayments over time.
Debt Consolidation on the Gold Coast: A Strategy to Manage Your Debts
- The first step is to figure out which debts you should tackle first. Look at how much you’re paying in interest for any outstanding balances on store cards, credit cards, personal loans or any other debts. You should focus on tackling the debts with the highest interest rate first. Even if you have an existing personal loan on a similar interest rate as your new debt consolidation loan, consolidating that amount with your other debts will still be beneficial as it allows you to manage your debts in one place with only one set of fees.
- You then need to work out how much a debt consolidation loan could save you. Calculate all of your existing debts along with their minimum repayments and interest rates and compare them with a new debt consolidation loan. For example, if you have 2 credit cards sitting on 10% interest p.a and the new debt consolidation loan is 5%, you will save on interest if you consolidate.
- After you have consolidated your debts into a new loan, you should focus on your expenses and avoid applying for any new credit cards. Instead, use cash or a debit card. That way you’re spending your own money and paying no interest on your purchases. Giving yourself a weekly budget (if you haven’t already) is another way to avoid getting back into debt.
Debt Consolidation to Get Your Finances Back on Track
Debt consolidation is just one option in a range of debt solutions. If you’re struggling with debt, you should seek professional advice as soon as possible. At Debt Rescue, we specialise in debt relief solutions for all Australians. We will first assess your financial situation in a free 30-minute consultation and then recommend the best option moving forward. Whether it’s a debt consolidation loan, mortgage refinance, an Informal Agreement or a Debt Agreement, we can assist.
We offer an Australia-wide service with our team consisting of business debt and insolvency specialists including Chartered Accountants, Registered Liquidators, Bankruptcy Trustees and business advisors who have been supporting Australians get out of debt for years. Before making the final decision, get in touch with our Melbourne team today on 1800 00 3328 and find out the best solution for your individual financial circumstances.