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Debt has become
very easy to get into, and you may find
you'll be offered extra credit on your
credit card or an extended home loan,
sometimes even without asking. As a result,
it's also easier to over-extend yourself. On
top of that, managing your payments for
credit cards, store cards, personal loans
and a home loan, all charging different
interest rates, can become a complicated
business.
How will debt
consolidation benefit me?
A debt consolidation loan replaces multiple
loans (such as credit card debt, personal
loan debt and other unsecured debt) with a
single personal loan usually at a reduced
rate of interest.
A debt consolidation loan eliminates the
need to make multiple repayments for
unsecured debts. It ties up multiple loan
repayments into one affordable monthly
amount, allowing you to meet your debt
obligations while minimising your monthly
outgoings.
You may currently have two or more personal
loans or credit cards with outstanding
balances totaling $12,000. The minimum
repayment for all these debts is around $500
per month.
By consolidating all these debts into a
single loan over a longer term, the amount
you may have to repay could be reduced to
less than $330 per month.
With a debt consolidation loan it is usually
possible to make payments weekly,
fortnightly or monthly. The length of the
debt consolidation loan is set for a
repayment schedule which meets your needs.
You may be able to choose between 12 months
and 7 years depending on the purpose and the
amount of your consolidation loan.
A debt
consolidation loan can help simplify your
finances and save you money. Use this
Loan Consolidation Calculator for a
guide to your savings.
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