Debt Consolidation

Free yourself from debt through consolidation

Do you have bills piling up at home? Are you starting to feel the pressure from financial stress? Do you feel like your debts are becoming unmanageable? Consolidating your debts is a very realistic way to get your finances under control.

At the moment you are probably juggling several monthly repayments to cover a number of different debts. It seems as though every Australian needs at least one credit card, personal loan, car loan and a mortgage to lead the fantastic Aussie lifestyle we all know and love.

When these bills become unreasonable and your repayments only seem to be making a tiny dent each year you may want to consider tackling your debt head on.

Consolidating your debt

Debt consolidation will eliminate your individual debts and leave you with one loan, one repayment, one set of loan fees and charges and one interest rate.

This works by applying for a debt consolidation loan through your existing or a new lender. The amount you borrow will be enough to pay out each of your individual debts in full. Then you are only left with your consolidation loan to repay.

There are several benefits to consolidating your debts, but there are some things you will need to consider also.

Why debt consolidation?

The benefits include the opportunity to reduce the amount you are paying each month on your debts and saving money on the interest you pay. The money you save can be put to better use elsewhere. The new loan could either shorten the amount left on your debts, getting you out of debt sooner or it could give you a little more time to pay it off so you can breath and relax. The one regular repayment is much easier to handle so you aren't juggling your funds and stressing over what to pay on each loan.

Things to consider

However, there may be fees involved in breaking old loans as well as setting up a new loan. You should ask each creditor about breakage fees before you decide to consolidate the debt and shop around for a credible consolidation loan lender.

If you are considering consolidating your debts to get back on financial track visit our Debt Consolidation fact sheet or call 1800 00 3328 and Talk to An Aussie Who Cares.