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Debt Consolidation Debt Management Financial Planning

10 Steps To Get Out of Debt

If you find yourself in debt, which many people have since the COVID19 epidemic, it’s important to remember you aren’t alone. Whether you have made some bad financial decisions, or things beyond your control have occurred, such as unemployment, injury or illness, there are ways you can get back on track. There are many benefits to getting yourself out of debt, such as an improved credit score and lifts in mental health, so while it may feel daunting at first, a simple few changes you can make a huge difference to your lifestyle. Here are 10 steps to get out of debt.

10 Steps to get out of Debt

1. Put your debt in perspective

The first of 10 steps to get out of debt is to look at where you currently are. Answer the following questions:

  • How much debt am I in?
  • What interest am I paying on these debts?
  • How many debts do I have?

If you can make a note and get in a clear head about where you stand, you can prepare a way forward to get on top of it.

2. Set a budget

This is the best way to oversee your finances. It takes into account how much you are spending each month and on what. Start by writing down your income, and all your fixed expenses each month. This includes insurances, medical and food, dining out and entertainment. Take this away from your income and see how much is less. If it’s less than zero, then you can clearly see you are spending more than you earn and need to make some changes. See where you can cut down. Then, allocate a certain amount to paying off your debts. If you are after a spreadsheet to note all this down, there are plenty of free options on the internet.

3. Start paying!

Start paying off from highest interest rates to lowest, this will save you money in the long run. It is referred to as ‘avalanching’. This means the debts that are costing you the most in interest will be paid off first, before tackling the next one.

4. Lower your interest rates

ext step, it is worth looking at whether you can lower your interest rates. Having high-interest rates can make it much harder to pay off the debt. The easiest way is to contact your lender, and simply ask. If you have a good history of paying off your payments, it can help you succeed.

5. Consider Debt Consolidation

If you don’t manage to lower your interest rates, take a look at whether debt consolidation could be an option for you. This is the process of taking out a single loan to pay off all your other loans. This has the advantage of getting you a better interest rate and helping you keep on track with paying off your debt. Everything is in one place and you make one payment a month – not multiple.

get out of debt

6. Pick up a side hustle

Ever considered renting out a room in your home? Perhaps you have a hidden talent that can get you some extra work on the side? Now is the time to pick up as much work as possible to pay back your debt in a timely manner.

7. Put away those credit cards

The one thing you don’t want while trying to pay off debt is to go into even more debt. Hide those credit cards so that the temptation won’t even be there. Out of sight, out of mind.

8. Sell, sell, sell

Another great way to earn some fast cash is to sell things around your home that you no longer need. You can use eBay, Gumtree or even Facebook marketplace to list your unwanted goods. This could give you a good cash injection boost to get you started.

9. Ask for help

If you have made all these changes but are still struggling, ask for help. Speak to your lender and see if you can renegotiate the terms of your debt. You may even reach out to the family for a helping hand to get you through a bad period. Just getting a boost to start you off can be all you need when it comes to getting out of debt.

10. Declare bankruptcy

A last resort that you want to avoid if possible is declaring bankruptcy. This will have a long-term impact on your credit file and can affect other areas of your life. It is worth seeking professional advice before going down this route and making sure you have exhausted all other options.

Looking for some professional advice? Speak to the experts at the Australian Lending Centre. We can help you pay off your debts and get back on track. By following these 10 steps to get out of debt, you will be able to change your lifestyle and live within your means in no time.

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Debt Consolidation Business Consolidation Loans Debt Management Financial Planning Short Term Loans

Coronavirus: Financial Security in a Pandemic

Financial security and pandemic. The two don’t really go hand-in-hand, do they? As if facing a global health crisis wasn’t terrifying enough, the world’s economic nosedive is hitting Australian families and individuals hard. Really hard. But as with most things in life, rest assured there will be light at the end of the tunnel. As cheesy as it sounds, we really are all in this together. Out of this strange and unwelcome period will come a brighter future for Australia and the rest of the world. So while we work on our self-isolation best practices, what are the steps we can take to achieve a sense of financial security in a pandemic?

Find out what government support applies to you

The Australian Government is currently providing financial assistance to Australians during this uncertain time. The assistance includes income support, household support and temporary early releases of superannuation. All the important details can be found here.

Be sure to also look at your state government and find out what packages and recovery efforts apply to you.

South Australia: The SA government has unveiled a $1 billion jobs stimulus package. Keep an eye on media releases and updates here.

Tasmania: The Tasmanian Liberal Government has prepared a $420 million stimulus package to support Tasmania. Keep an eye on media releases and updates here.

ACT: The ACT Government has prepared an economic support package of $137 million. Keep an eye on media releases and updates here.

Northern Territory: The Territory Labor Government’s $65 million Jobs Rescue & Recovery Plan has been introduced to keep shops open, cash flowing and Territorians working. Keep an eye on media releases and updates here.

Western Australia: The WA State Government announced a $607 million stimulus package to support WA households, pensioners and small businesses in the wake of COVID-19. Keep an eye on updates here.

Queensland: The Queensland Government has announced a $4 billion COVID-19 package to support Queenslanders’ health, jobs and businesses. Keep an eye on updates here.

Victoria: The Victorian Government has announced a $1.7 billion economic survival and jobs package to support small and medium sized businesses in Victoria. Keep an eye on updates here.

Write up a budget plan

If ever there were a time to start being conservative with your funds, now would be it. You’ll feel an alleviating sense of financial security in a pandemic if you can stick to a well-curated budget. Remember, the ever-changing economic climate brings all kinds of financial stress, so you’ll want to keep updated on what’s happening and budget around that.

Accept the current state of affairs and do what you can to work around it. Try to avoid spending as if everything is normal in the world. Evolve and adapt your spending to suit the current climate. That being said, please don’t panic buy.

Panic buying goes against the idea of budgeting for a pandemic. You might find yourself buying excess of what is necessary, being left with little funds to support other areas in need. Excessive stockpiling can also lead to price gouging, which is when the prices of certain supermarket items double or triple in price. None of us want to pay $20 for toilet roll.

Pay attention to budgetary changes

Now that you are in self-isolation, you will notice certain expenses disappearing and others rising. As you won’t be leaving the house, you will no longer be paying for petrol or for drinks or a night out. You will, however, be using electricity and water at home a lot more. Consider these variables and tailor your spending habits around them. You will need to pay close attention to what money goes where as it will be different to your routine money management system.

Carefully consider a loan

Australian Lending Centre is a leading provider of bad credit loans and consolidation loans Australia-wide. We strive to assist people who have multiple credit cards and personal loans. With the introduction of the coronavirus, we understand finances are tighter than ever. ALC can lend a helping hand. We offer a wide range of financial services and can provide a product to match your individual needs. From debt consolidation and debt management, to credit repair and low doc loans, ALC can help. Get started on your loan application here.

Look after your mental health and well-being

It may be the last on our list, but it is indisputably the most important. A healthy mental state is vital to feeling a sense of financial security in a pandemic. If you feel mentally on top of things, the finances will follow.

Avoid Fake News and Sensationalised Media

One of our top tips would be to avoid fear-inducing media if you find yourself inclined to anxiety. Although we have addressed keeping up to date with the latest pandemic news, this doesn’t mean delving deep into conspiracy theories and reading about all the tragedies. Have an understanding and be aware. Just don’t spend all your time consumed by COVID-19 news.

Stay Busy and Engaged

Try to keep yourself occupied with hobbies. Read a book. Go for a jog. Clean the house or learn a new recipe. Being homebound doesn’t have to mean being bored out of your brain. It certainly doesn’t mean sink into the couch and rotate through Netflix series’ all day.

Seek Support

Finally, seek support if you’re feeling helpless. Beyond Blue has a dedicated page on its forums to help those who are experiencing mental health depreciation due to the current global crisis. You can contact the Australian Government Department of Health on their national helpline (1800 020 080) for information on the pandemic. There will always be people you can speak to and people who can help.

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Debt Consolidation Financial Fitness

Forget toilet paper, why should you consolidate your debt amidst the Coronavirus panic?

It’s the word on everyone’s lips, the fear at the back of everyone’s mind. What will happen to me if I get coronavirus? What will happen at my workplace if coronavirus infiltrates? How do we keep ourselves and our loved ones safe? These are all very legitimate concerns, but there is also something much bigger happening as a result of the recently confirmed pandemic. There’s very serious economic instability right now, which is why you should consolidate your debt.

What’s happening economically as coronavirus spreads?

Our economy is coming to chaos. Cities are being evacuated, schools are closing their doors, travel restrictions are being implemented and stock prices have been in free fall as the airborne virus spreads. Amidst all this panic, just how is coronavirus impacting financial markets and our very own financial stability? What’s going to happen to those currently owing debt? How can debt consolidation help in the age of coronavirus?

First things first, you can forget the toilet paper. We’ve got bigger problems on the plate to worry about. With stocks taking a dive, there’ll be less capital available for banks to loan people money. We can also speculate that as the global economy becomes unstable, debt will begin to mount. How come? Well, for those who aren’t currently in fixed-rate agreements, debt is subject to rise as lenders begin changing their terms. With banks fiddling with policies, borrowers will be at the mercy of their changes and those paying off debt are left dealing with a very volatile financial landscape.

The baseline is that we just don’t know what the future holds regarding coronavirus. And we certainly don’t know what it means for our future financially. In a time like this, uncertainty is unsettling, especially with coronavirus posing risks to employment around the world.

How can consolidating your debt help you in such a precarious time?

By general definition, debt consolidation can help reduce the stress of multiple debts by bringing them all together into one single, manageable debt. If you owe debt, the lender could change their policies at any moment, and if you owe many, that’s a no brainer. It’s one alarmingly volatile position (and can be a very confusing one at that).

Australian Lending Centre is here to offer a sense of stability in this shaky time. Consolidate all your debts into one fixed-rate payment, save money with a lower interest rate and overall, feel secure with peace of mind for you and your family.

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Debt Consolidation Debt Management Financial Fitness

Learn How To Manage Finances After Divorce

You might have been led to believe that marriage ends in ‘happily ever after’ (thanks to Disney), but the reality is that approx. 1 in 3 marriages ends in divorce. Emotional consequences aside- the financial impact of divorce can last for decades and carry on into older age, according to new research. It’s important to understand how to manage finances after divorce.

The numbers and women

According to a CII research report:

  • 34% of women in their 30s say their money wouldn’t last a month if they lost their main source of income.
  • The average man accumulates 5x the pension pot of the average woman.
  • The average divorced woman has 1/3 the pension pot of the average divorced man (£9,000 vs £30,000).
  • Most women in the bottom 40% of households by household income have no pension wealth at all.
  • Women’s household income fell by 41% following a divorce or separation after age 50, while men’s household income dropped by only 23% (GAO.GOV downloadable report).

Why such a strain on women?

46% of divorced women said they experienced financial surprises, including:

  • Being unaware of the total size of their marital debt (the primary mortgage, home equity line of credit, auto financing, credit card debt and loans).
  • Not anticipating the financial need to return to work.
  • Assuming they could keep the marital home.
  • Expecting child support would be higher or last for longer.
  • The giant cost of health care insurance.
  • Underestimating the cost of getting a divorce.
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Sadly, 47% of divorces involve children under 18 years of age (gov.au)

“Child care, medical expenses, education and extracurricular activities are typically called into question post-divorce.”

heri Atwood- Founder & CEO of SupportPay

Since almost 82% of parents with custody are women, these expenses that fall outside that base monthly payment usually land on the mothers.

Ways to manage finances after divorce

Enlist a good divorce solicitor

They can advise you and help in devising a plan in moving forwards.

Close all joint accounts

Open new accounts in your name and take your name off joint bills. Ensure that your credit record is clean.

Be aware of any joint debt

After divorce, you not only split assets 50/50 but also split any joint debt. If you suddenly find yourself juggling millions of different debts, then it might be worthwhile looking into Debt Consolidation.

Clean up your retirement accounts

Speak to a professional about dividing your superannuation accounts.

Don’t get emotionally attached to your marital home

Can you realistically afford to keep it on your own or would it be better to sell up and find something more economically suitable?

Budget smart

Be aware of your income and expenditure. Work out your current budget and plan for a financially healthy future.

Your financial support options

Whether it’s personal or business financial support you require- help is always available.

Get the support you need – financially or advisory from us.

Australian Lending Centre offers:

Speak to our team to see which option is best suited to help you.

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Debt Consolidation

Debt Consolidation Loans: Pros vs Cons

We all have seen the advertisements, from the sublime to the absurd, for payday lenders and car title loans. There are a lot of options out there when it comes to debt consolidation loans. When you are in debt, finding new sources of money and innovative ways to pay existing bills can be a challenge. However, there really is no need to fall victim to predatory lending, but rather, you can consider alternatives to addressing and resolving your debt crisis. In this article, we discuss the pros and cons of debt consolidation.

According to the Australian Securities and Investments Commission (ASIC), 18.5% of consumers have credit card debt, totalling $45 billion. Of that $45 billion, $31.7 billion was from interest alone. Indicating the potentially catastrophic consequences of credit card overuse for consumers and the impressive revenue stream for banks.

Debt Consolidation Loans – A Simple Answer

With a significant portion of the population subsumed by credit card debt, not to mention other expenses including rent, utilities, car, and mobile service, more people are sliding into a fiscal hole, owing money to multiple sources.

In such a scenario, what to do? Are there options to help alleviate the pressure?

Yes, there are, with the two biggest solutions being debt settlement and debt consolidation. The two may appear similar, like a credit report verses a credit score, but they are different. Even though they both seek to solve the problems of debt, the two offer different benefits and potential problems.

Make Your Life Easier

Debt settlement is the negotiation with creditors and/or lenders to settle the debt for a figure less than the original amount. It works better when there is only one creditor since multiple creditors will demand multiple negotiation sessions, with no guarantee that everyone will agree to the new terms and conditions.

This can be a risky solution to your debt problems because there is always the chance that you may accrue more fees and interest while negotiating.

If you employ a debt settlement company to represent you, then they’re definitely will be costs for their services. Also, there will be an impact on your credit report and credit score, because even though the debt was settled, it wasn’t paid in full.

As a result of these factors, debt settlement may not be the best option, even though it can provide short term relief. Therefore, debt consolidation would appear to be the preferred choice for many people struggling to be debt-free.

Debt Consolidation is a Good Option

Debt consolidation is appealing because it simplifies the bill-paying process. Instead of paying multiple bills to multiple lenders every month, you will pay one bill to one lender, with a lower amount and a lower interest rate. In this manner, you should theoretically be able to pay off your debt quicker and to avoid bankruptcy.

However, please note that if you don’t make some substantial changes to your spending habits, including the use of plastic, you might always find yourself with the burden of debt.

Consolidation helps with the practical aspects of payment, but it also provides you some time to develop new financial skills, such as making a budget and saving for emergencies.

There are four different types of debt consolidation services

  • Debt Management Plan
  • Balance transfer on credit cards
  • Personal loans
  • A home equity loan.

Debt Management is usually the most popular choice as it provides access to credit counselors and financial education classes.

A balance transfer is another popular method, but the ASIC warns that as alluring as those offers may be, they are actually “debt traps”.  They urge consumers to research the various kinds of credit cards and to choose one that has the best interest rate and lower fees (or ideally, no annual fee).

Slash Your Interest Rates

As great of advice as this may be, it does not necessarily help those currently with credit card debt. Should you choose to transfer your credit card balance, keep in mind that the 0% interest does have an expiration date and the transfer fee is between 2%-3% of the balance.

A personal loan may seem counterintuitive, but there are loans with interest rates lower than credit cards. If your credit score is low, you may have a difficult time qualifying for a loan, and you will need to provide collateral.  Loans may carry an origination fee and a pre-payment penalty, so carefully read the fine print.

As for the home equity loan, the interest rates are also low, but you will be using your home as collateral and therefore, should you default of the loan payments, you may lose your home.

Make a Change for the Better

Although this information may appear to be grim, they are valid and helpful solutions to debt problems. There are always pros and cons to difficult decisions, so pick a path suitable for you. Debt consolidation is definitely a better choice than debt settlement unless you have only one creditor.

With debt consolidation, please be patient with yourself and know that it can take anywhere between two to five years to be debt-free.

The pros to debt consolidation definitely outweigh the cons which include the possibility of the payment plan derailing and/or putting yourself further in debt by using your credit cards, which most likely is what put you in this situation in the first place.

Now you are aware of the pros and cons of Debt Consolidation, the most important thing to remember is that there are ways to improve your situation. There are many resources to help you with debt consolidation, so the first step is to make that call or to search online so that you can start the journey out of the fiscal rabbit hole.

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Debt Consolidation Personal Loans

Advantages and Disadvantages of Personal Loans

There are so many different types of loans out there, it can be hard to know which one you should be taking out for your particular circumstances. We are going to take you through exactly what a personal loan is, when it’s a good option to take one out, the different types of personal loans and finally the advantages and disadvantages of them.

What is a Personal Loan?

As the name suggests, a personal loan is a type of loan you take out for yourself. They are fairly straightforward to process. You borrow a specific amount of money from a financial institution, and then repay this amount, including interest, over a set amount of time.

In fact, personal loans work very similarly to credit cards, but with one big difference – they tend to be much cheaper. Most people have heard of and possess a credit card for day-to-day transactions, yet would not consider a loan based on misconceptions about them only being for large amounts and for those in extensive debt. Personal loans are no different from taking out a credit card, and you may, in fact, find that you can save some money by taking one out.

Different Types of Personal Loans

There are two types of personal loans:

  1. Secured loan
  2. Unsecured loan

Secured Loan

A secured loan works by you offering something up as security in the event that you are unable to pay your repayments. As you would expect, these loans come with a lower interest rate attached as there is less risk being taken on by the lender. They know that if you fail to meet the repayments, they are entitled to the asset you have chosen. You can offer up your house, your car, or another big-ticket item, and then this is used as security against your debt.

Unsecured Loan

An unsecured loan is the opposite, where nothing is offered up as security for the debt. The interest on this type of loan is higher, as you would expect. The lender has no security that they will get the money back from you. If you do fail to make the repayments, they may choose to take you to court.

Whether you opt for a secured or unsecured loan, it is important to weigh up the interest costs of both and decide what works for your circumstances.

Personal Loans

So, the question is, should I be taking out a personal loan?

The answer to this isn’t so black and white. Here are some advantages for you to consider.

Advantages of a Personal Loan:

  • They are versatile: unlike other types of loans, such as a mortgage, a personal loan can be used for whatever you like. Whether you have unexpected medical expenses, are looking to renovate your home, or want to take off on holiday, you choose where that money goes.
  • Better interest rates: as mentioned above, personal loans offer better interest rates than credit cards, making them a better option if you need a small, quick cash injection.
  • You don’t need great credit: unlike many other loans that are based largely on your credit score, personal loans are possible with bad credit. You will end up paying higher rates though.
  • Borrow what you need: if you have an end goal in mind (such as renovating your bathroom), then you only need to borrow the money to cover this. You set the amount and pay it back over time.
  • Approved quickly: personal loans after often smaller than other types of loans on offer, and for this reason, they can be approved quite quickly. Once approved, you have access to the money within a few days.

Personal loans also come with their disadvantages, which also need to be weighed up.

Disadvantages of Personal Loans

  • You are locked in: your payments are made monthly and are fixed in with a certain amount to pay off. While credit cards give you extra time to pay off the balance, if you miss a loan repayment the lender can take you to court.
  • Origination fees: many personal loans come with something called an ‘origination fee’, which covers the cost of processing the loan and amounts to about 1 to 6 percent of what is being borrowed.
  • Debt cycle: personal loans can also encourage a cycle of debt, as people take out loans to cover other loans and pay for things they can’t afford.

In the end, the decision of whether or not to take out a personal loan comes down to your individual circumstances. By weighing up the pros and cons you are able to work out what is best for you and what you need.

Personal loans can be extremely helpful when you need them, so make sure you look into all the pros and cons when it comes to weighing up your options.

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Debt Consolidation Bad Credit Loans Home Loans

10 Reasons Your Home Loan Was Denied

Most people believe a good life is having that killer home and a stable job. But what happens when you try to apply for a loan and get rejected?  It can become increasingly disheartening to hear the same 9 words –  “we are sorry your loan application was denied.” In this article, we dig deep and reveal the reasons why your home loan was denied.

Understanding the reason behind your loan denial is a valuable learning experience. This reason helps you to pinpoint the areas of your financial life that need to be polished. You can always improve on this and reapply for the funding.

 Let’s dive right into the ten reasons why your home loan was denied

Poor Credit History

Credit history is simply a record of a borrower on debt repayment from several sources, including banks, collection agencies, or credit card companies. Potential creditors such as the Australian Lending Centre and other mortgage lenders use your credit report or information to decide whether they will give or deny you a loan. Your credit information is the right way for lenders to tell whether you are a risky investment or not. Having a poor credit history will deny you a home loan.

If you check your credit score and you find that you have defaults, blackmarks or court judgments, it is highly recommended that you remove these otherwise you will struggle to secure funding. There are specialised credit repair agencies that can assess your credit situation and work towards removing these negative listings.

Insufficient Income/Asset Documentation

One of the big reasons why your home loan application may be denied is due to your income or debt ratio. Your income is an excellent measure of whether you can or cannot afford the home. ALC is likely to enquire about your assets and, more specifically, your liquid assets. They’ll want to identify what you have saved to raise a down payment, pay closing costs, and make monthly loan payments once you close your loan.

You have to make sure that you have sufficient income or assets before you apply for a home loan. It is essential to have your resources in a certified account, at least two months earlier, to applying for a home loan. It is because banks and lenders regularly ask for your two latest bank statements. Also, make sure you verify your assets for a down payment, closing costs, and reserves.

Down Payment is Too Low

Typically when you buy expensive things on credit, you need to make a down payment. The down payment amount usually covers a portion of the market price of the home. Lenders look at the upfront amount as an investment in their future home. A low upfront may not put their minds at ease. To certify your home loan application, consider having a more significant down payment, or else your home loan will be declined.

Problems with the Property

Sometimes you are not the cause of a home loan denial. It is not always your fault. Your home loan denial may be due to problems with the property you want to purchase. Therefore before you apply a loan for a particular home, do thorough investigation and research about the property.

Inadequate Employment History

Your employment history is essential when it comes to a home loan approval. You should have a consistent job history when applying for a mortgage home loan. Most lenders will consider two years of steady employment history to process your loan. By doing so, they only want to be assured that you can hold on to a job long enough to repay the debt. Make sure to keep all your payslips and any tax information. You will want to make the process as easy as possible for lenders.

Inaccurate documentation

Home loan lenders want to know everything about you, and therefore, leaving out any information may raise the alarm. It is always good to provide all the required details and fill out all the sections on application forms.

Reduced Debt to Income (DTI) Ratio

Most lenders look at DTI Ratio before awarding a home loan. DTI Ratio is simply a sum of your monthly payments divided by your monthly income multiplied by 100%. You should always aim at 45% and below.

Unpaid Taxes

Taxes are significant to a country’s income. A due fee is another debt that can haunt you. It can lead to a robust rejection of your home loan application. Make sure to work through old debts before applying for a home loan.

You Asked for Unreasonably Low Loan

Most lenders give loans based on how much interest they will make. The lower the investment, the lower the benefit they will gain. Therefore, you should understand that lenders make money from interests that are higher on high loans than small loans. They factor their profit against their risk, so it is unlikely for them to approve a low loan request.

Bulky transactions

Just like receiving huge money, large transactions may raise red flags when applying for a loan. You should not make large transactions as you near a home loan application period. Stick to low operations and always be ready to explain the purpose of the transactions. Valid documents should accompany this.

Final Thoughts

Now that you have learned and you are well aware of the reasons that can lead to your home loan denial, you only need to rectify what is dragging you behind.  Make sure that all the above are taken care of before requesting a home loan, or else it can get rejected. If your loan is denied, remember it is not the end. Focus on building positive financial habits that will help you increase the likelihood of securing a loan.

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Debt Consolidation Debt Management Financial Fitness Financial Planning

How To Save Money When Online Shopping

Online shopping has become a convenient and easy way to buy what you want when you want..  Crazy bargains, heavy discounts, fast delivery, and convenience are only some of the reasons why people are shopping online. With all these ‘crazy’ bargains we are seeing an influx of people overspending. Consumers are buying anything and everything. Now – this is not necessarily bad; but if you find yourself turning into an online shopaholic, it may be time to start thinking about how you can save money when online shopping.

Here are some of the ways to save money when online shopping

Be quick or have patience

Have you hopped on to an online retailer to see the entire page full of Sales? You quickly find a nice pair of shoes. They are reduced by 15%, oh and they only have one more in stock. Luckily it’s your size. You cannot miss out? Can you? You add the shoes to your cart and away we go.

Finding a bargain can well and truly save you money, but sometimes, you’re really just falling for digital psychology – yes this is a thing!  Rather than buying with your emotion, stop, take your time and assess whether you need the item or not. If you really do need them and they are cheaper than competitors then go ahead. If however, you wait, you may see a further discount online. This discount may come later on through an email notification so don’t forget to register for their email notifications and then wait.

Search for coupons and use them prudently

The majority of people now are aware of registering to receive the seller’s email promotions. In saying so there are still a variety of online coupon providers such as Groupon that can help you save that extra cash. Search online for online coupons and use them at your disposal. Sometimes you may even be able to combine multiple discount codes. Win-Win.

Find the right days

Most companies have conducted their research into when shoppers are most likely to purchase. It is on those days that they will offer brains to draw customers in. For example, research suggests that the best time to buy clothing online is a Monday. Shoppers may save anywhere up to 50% on pants. Using that to your own advantage can be helpful. Buying your stuff on the right day will help you save. All it takes is a little research and patience.

Showcase your loyalty

Register for loyalty reward programs if you are a frequent shopper of a particular site. Your reward points on discounts and gifts will accumulate as you purchase your products. However, avoid going overboard when purchasing products to accumulate the points. The last thing that you want to do is buy something only for the sake of accumulating points. Save them and use them when you really need to.

Utilise social media

For the quickest and easiest way to catch a bargain, make sure you follow your preferred online shopping sites on social media platforms. Press the like icon on their Facebook page, start following influencers on Instagram and get on board their Twitter page. This is the easiest and greatest way to find out when products are on special. There are always giveaways and discount codes that get are available online.

Avoid overpaying on shipping

Thousands of companies allow you to jump the shipping fee if you buy goods worth a certain amount. Rather than making single purchases, consider creating a list of stuff that you need and order then all at once. When shopping online, look for websites that offer free shipping and whatever you do stay away from express shipping – unless you really need to.

Try to outwit dynamic pricing

A smart way to save money when online shopping is to take advantage of dynamic pricing. Dynamic prices can be defined as a fluctuating price that is shown to consumers depending on various factors.  These factors can include location, spending habits, current demand, and browsing history.

For example, if you’re shopping for an airline ticket, you may notice the price will change. You may have paid $500 for your first flight but when you check back on a different browser or your friend’s phone, the price has increased or decreased. There are two ways in which you can outwit the dynamic pricing.

  • Clear browsing history and cookies. This will make you appear like a new client on the site
  • Sign out all your account and use incognito mode to browse anonymously

Final word on online shopping

Use these tips to save some cash on all online purchases you make.  That can be via discounts, cash-back sites, smart tactics, shopping vouchers, and coupons. Above all avoid using buy now pay later services such as Afterpay. These services can lead you to a pit of debt.

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Debt Consolidation Bad Credit Loans Business Loans Home Loans Personal Loans Short Term Loans

What Are The Benefits Of Using An Alternative Lender?

Following the GFC, banks became very cautious with how they lend their money. They didn’t lend to certain borrowers particularly those with bad credit or small businesses – in the fear that they would not be able to get their credit back. As a result, many businesses fell into bankruptcy because they had no one to turn to for financing.

If you’re looking to start a business, it can be even more challenging to secure financing from a bank. To get your business operational you may need some sort of finance. This is because you cannot start a company without the necessary capital to sustain it. When banks close the door your business dreams, just remember that it is not over yet. Aussies have one more form of financing that they can use – and that’s alternative lending. Slightly different from the traditional bank, alternative lenders have become quite an attractive choice for those that are in need of a loan.

What Is an Alternative Loan?

Alternative loans are the kind of businesses that aren’t provided by traditional lenders – for example, banks or credit unions. Examples of these kinds of loans are private loans, bad credit loans, wholesale funds, peer-to-peer loans, start-up loans, and so on.

Each of these loans has its own terms and conditions – which is why you must research accordingly. Depending on the lender, you might be asked for a higher interest rate, or given a smaller loan amount. But depending on your preferences, you will choose the one that is most suitable for you. Overall, alternative loans offer a second chance at finance.

Why choose an Alternative Lender?

There are various reasons why you might want to go for an alternative lender.

The Application Process Is Quick and Easy

Every alternative lender will have a straightforward loan application process. Technically speaking, all you have to do is provide some basic contact (or business) information, along with some financial data. A lender will need to quickly assess your financial situation to see whether they have the right loan product available.

Depending on the lender, you can expect to have your application completed in as little as 15 minutes, provided you are working with a tech-savvy lender. If you are borrowing online, it is even more convenient, as you will not have to get out of the comfort of your home in order to make the application.

Funds can be released quickly

It takes a few minutes to a few hours for your application to be approved – all depending on the time at which you make your request. The quicker that you work with the lenders, the faster you can get your funds. At the Australian Lending Centre, we offer an easy way to upload your documents. It takes a matter of minutes and can be done from your mobile. From the moment your application is approved (assuming it is), it can take as little as 24 hours for the money to appear in your account (depending on the lender)

Some lenders do so in 48 hours, but this is still the better alternative to traditional banks, for which you will likely have to wait entire weeks. This way, it will be much easier for you to start off with your projects right away.

You May Borrow with Bad Credit

If you have no credit or bad credit, there is a high chance that banks will not lend you money. They will see you as a red flag – and they will believe that you will not be able to make your payments on time. Unless your credit is above a certain number, there is a high chance that your request for a loan will be denied.

However, alternative lenders such as Bad Credit Loans generally have far fewer requirements. Whilst they still asses your finances, they will still lend to bad credit borrowers. Therefore, if you had trouble making timely payments before or had no luck with traditional lenders, then there is a high chance that you might be luckier with an alternative lender.

You May Use the Funds However You Want

Certain lenders expect that you use the funds that they give you in a particular way. For instance, if you are the owner of a construction company and opt for taking out a business loan, then you need to specify what you plan on doing with that money. As an example, you have to specify in the application that you need the loan to buy a bulldozer – and the lender will know that your profits will start growing with that purchase.

However, with alternative lenders, this will pose no problem. For all they care, you may use that money to buy a bulldozer, pay old Jim’s paycheck, or purchase a new fancy pen for the office. Obviously, you will use that money wisely – but what matters here is that the lender won’t set conditions on how to use that money.

Should I use an alternative lender?

Alternative lenders represent a very convenient solution when you are running low on money, but the banks won’t give you a loan. Alternative lenders offer people who have been refused in the past with a second chance at finance. All that you have to do now is find the right lender that will provide low-enough interest rates.

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Debt Consolidation

Afterpay and the rise of Buy Now, Pay Later Services

Whenever you’re in a store and you see something that you’d love to buy, but your wallet is empty, you get full of frustration. You would do anything to get the necessary money, only so you can purchase the product before it’s out of stock. You’re not alone. A lot of individuals are experiencing this.

Since buy now, pay later services have been invented, people can get what they want, while not paying the full price from the get-go. Doesn’t that sound awesome?

Such services like Afterpay have risen, and millennials are loving it. While this might seem like a good option, it might not always be the wisest thing to do, especially if you have no plan on how you’ll pay the rest of the money.

Here’s what you need to know about Afterpay, and the growth of buy now, pay later services

Buy Now, Pay Later Services – What Are They?

Buy now, pay later services represent an option you have in stores when you want to buy a product, yet you don’t have enough money for the full price at that moment. Such a service allows you to submit to a plan where you pay part of the price at the beginning, whereas the rest will be paid in instalments over a certain period of time.

Usually, the buyer receives the product before making the full payment, which is something that attracts many individuals. Not to mention that the trend is extremely popular among millennials, as young people have fewer chances to receive a credit card – thus, they have to resort to other solutions. In certain situations, it’s a very convenient option.

The Rise of Buy Now, Pay Later Services

Since not all people meet the requirements for credit cards, the rise of buy now, pay later makes sense. Basically, these services let people buy something without making an upfront payment, or without having upfront interest or fees. For this reason, we are seeing millennials rush to use Afterpay.

With the rise of Afterpay, we are seeing a lot of younger consumers utilising Buy Now, Pay Later services. The Australian Securities & Investments Commission has declared that the number of people using this method has gone from 400,000 to 2 million. This boost occurred between the financial years 2015-2016 and 2017-2018.

What Is Afterpay?

Afterpay has become the most popular choice of service for Australians.  As mentioned it is a buy now, pay later service that allows you to pay for something in four instalments. This allows you to buy a product or use a service without having to provide full upfront payment.

One of the major appeals to using these Buy Now, Pay Later services is the fact that there is no interest charged. As a customer, you are required to pay for your purchase in instalments for about 56 days. Whilst no interest is charged, you will have to pay a late fee if you miss payments. Timely payments will grant you access to a free service.

Late payments

Buy Now, Pay Later services such as Afterpay are generating their revenue from customers who are late with their payments and merchant fees. In fact, 17% comes from late fees, and the rest comes from merchant fees.

The service has made a reputation ever since May 2016. It was able to raise $25 million through shares. It’s market capitalisation was of $165 million, after selling more than 15% of their equity. Afterpay makes sure to give the retailer all of their requested amount upfront, to assume the non-payment risk that may come with some customers.

Although Afterpay was launched only 3 years ago, 16,500 Australian retailers offer it as an option. Moreover, 10% of customers in Australia are using the service. Its success is undeniable.

Is it worth it?

Buy now, pay later services can be very convenient. They guarantee that you can purchase a product in time, before it sells out, even if you don’t have the whole amount of the price. As a consumer, this is really appealing.

At the same time, Buy Now, Pay Later services can be detrimental to your personal finances. Many young Australians are overspending and paying for products that they simply cannot afford. If you continue to miss payments, you can also receive a default on your credit file. Unless you clean your credit, you may struggle to secure a loan in the long run. Whilst alternative lenders offer support for people with bad debt, it is better to prevent this from happening early on.

The key to using Buy Now, Pay Later Services such as Afterpay is to come up with a plan, budget and make sure that you’ll be able to pay off all instalments in time. Not doing so will end up costing you more than you want to, and you’ll only deal with debt afterwards.

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Business Loans Debt Consolidation Low Doc Loans News

The Rise Of Non-Bank Lenders

There was once a time where if you needed a loan, you only visited a bank.  Fortunately, times have changed.

Yes, you can still go to a bank but there are now alternative; more convenient options. Non-Bank Lenders offer legitimate and competitive loans that are fast and flexible. Battling against traditional banks, Non-Bank lenders have created a competitive environment for lending in Australia.

What is a non-bank lender?

Non-bank lenders are a lender or financial institution who do not hold an Australian Banking License. Strictly speaking, they are not a bank, building society or a credit union. Non-bank lenders typically source their funds from wholesale funds either in Australia or overseas markets. They lend out these funds, with a margin. Depending on the size of the lender, they may offer mortgage, personal loans, commercial or business loans.

One of the key difference between traditional banks and non-bank lenders is that Non-bank lenders are not authorised to accept deposits from customers. Banks, building societies and credit unions are considered as authorised deposit institutions (ADI’s). They are regulated by APRA (Australia’s Prudential Regulatory Authority) and ASIC (Australian Securities Investments Commission). Non-bank lenders cannot accept deposits from consumers. They are regulated by ASIC.

The history of non-bank lenders

The history of non bank lenders

Australia has a sophisticated, highly regulated and competitive financial system. There was once a time where if you wanted a loan, your only option was to visit your big bank. The process was long and draining.  If you’re your income was low, you were more than likely denied for a home loan.

After the first half of the 1980s, deregulation began to slowly make its way into the market.  In the 1990s, a number of non- bank lender such as Australian Lending Centre began to enter the market. These alternative forms of lending offered Australians with lower interest rates than the big banks.

Following the Global Financial Crisis, Non-Bank Lenders were forced to source alternative forms of funding. As the markets became dry, non-bank lenders even turned to the big banks for funding.

The past few years have seen a proliferation in Non-bank lenders. In 2018, Non-bank lenders reached an all-time high of 11 percent of the market. As banks move towards more responsible lending, they are tightening their lending practices. So if you are sick of getting rejected for a loan, there are alternative options out there. Consumers are becoming more wary of this and have been exploring non-bank lending options.

The Advantages and Disadvantages of using non-bank lenders

Advantages and disadvantages of non- bank lenders

Is it safe to use a non-bank lender?

Absolutely. Non-bank lenders are safe to use. It is important to do your research beforehand. Alternative lending has evolved over the past decade. Make sure to find a lender that is not connected with bank failures. Find a reputable and well-established lender that offers a personalised loan for your financial situation.

What happens if a small lender collapses?

  • If the lender is a small agency, they may be acquired by a larger well-established lending agency
  • A larger financial institution may buy out the smaller lender
  • The government may step in and provide financial assistance. This will come through the Guarantee scheme for large deposits and wholesale funding.

Choosing the right lender

Alternative lenders such as Australian Lending Centre have helped thousands of Australians, find the ideal loan. We have a committed team of experts that specialise in providing you with the right loan. Our goal is to help you stay on track.

To learn more about the Australian Lending Centre, click here.

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News Debt Consolidation Debt Management Financial Fitness Financial Planning

Fast Loans and the Fastest Ways to Repay Them

When you need cold cash now, fast loans can be your best bet. Fast loans are quick and easy to obtain. Lenders can process loan applications within 24 hours meaning you can have your funds in your account overnight.

Whilst fast loans may be your saving grace, how can you repay your loan back quickly?

Here are some tips for paying back your loan faster

1. Pay more

If you can afford it, put in larger payments each month to pay off the principal more quickly. For example, $2500 fast loan with 6.8 % interest with a 10-year payback period would cost $28.8 a month. Making $70 payment on a monthly basis instead of $28.8 enables you to repay the fast loan in just over 36 months. By paying the principal more quickly, you will also pay for less on interest.

2. Make additional payments

The less you owe, the less interest that you will be charged. If you are able to budget effectively; you may be able to make additional payments to your fast loan.

3. Create a plan to pare your fast loans

Know exactly when your fast loans will end. Next, create a goal to pay it off within a specific period of time, commit to it and pay it according to the repayment plan. Make it a routine to pay it off monthly. If you’re facing difficulty in coming up with the monthly payments, create a budget and cut back on your expenses. This way, you can lift your debt obligations off your shoulder faster than ever.

4. Automate savings

Automatically transferring money into alternative accounts is a great way of saving that extra cash. Rather than spending money on trivial things such as movie tickets, or that unhealthy meal; automatic payments can help you set aside that extra cash to pay off your debt.  Make sure that you will only use that account for paying back your fast loans and other types of debt. This will require sacrifice in certain areas, but it will ensure that you are one step closer towards financial freedom.

With the growing wave of cryptocurrencies such as Bitcoin and Litecoin; some experts have suggested investing your extra savings into crypto. This is an extremely volatile and unpredictable form of investment that we do not recommend. Many experts compare cryptocurrency as a form of gambling. Whilst, it may seem as though there are immediate increases in profits; you may lose all your hard-earned savings in a second.

Hide your credit card in a safe place

Don’t be a victim of credit card theft. With easy access to your credit cards via pay pass; strangers who have access to a lost credit card can easily tap on purchases less than $100. Keep your credit card securely in your wallet. If you lend your card to friends or family, make sure you keep track of any transactions online.

Keep your phone in your pocket. 

The same rule applies to your mobile phone. With the rise of Apple Pay, you can purchase your transactions through your mobile phone. Make sure that you keep your phone locked with a passcode so that strangers cannot make any payments without facial recognition or a passcode.

5. Close some credit cards

Having them on your wallet may tempt you to spend more. Leave only the low-interest credit cards for your urgent needs.

6. Consolidate your debts

One of the best ways of ensuring that you continue to pay off your loan quickly is to consolidate your debts into one neat and tidy bundle. This will also protect you against the rising interest rates across different loans. This will benefit you in the long run; whilst making it easier to manage your debts.

7. Be proactive by increasing your income

Earning cash while dealing with your debts is a good way to stay proactive about overcoming debts. You don’t only generate wealth to pay for your loans; you also build your nest egg. If you can put away $100 every month out of your income, that would be $1,200 annual savings.

At the Australian Lending Centre, we can help you avail of our easy-to-pay fast loans and our debt management plans. We can help you strengthen your ability to repay your loans and live a financially secure life. It takes discipline and planning, but you can surely do it.

Contact Australian Lending Centre to get back on track. 

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Debt Consolidation Credit Card Consolidation Personal Loans

Saving Money On a Lower Income

There is a range of strategies you can employ to make saving money o. One of the major areas that can save you a lot in the long term is debt consolidation. There are also some other lifestyle choices you can make to improve your financial situation.

Many people think it is all too hard, but everything you do will help, even small changes can make a huge difference. We can all employ a range of measures that will prevent budget blowouts without sacrificing all the things you like doing.

If you are finding yourself on the roller coaster of no savings, bad debt management, poor (or no) budgeting and everything is a bit chaotic, Australian Lending Centre has some tips and tricks to get you out of bad debt employing activities such as debt consolidation, saving and feeling in control again.

First things first – Where Does Your Money Currently Go?

If you don’t yet have a budget, keep a financial diary for your pay period and track how you are spending your money. The Money Smart website offers a great money tracking app to make this easier. This will give you valuable insight into your habits and areas you can save.

  • What are you spending your money on?
  • How much is left over at the end of the pay period?
  • What money needs to go out on payments and bills?
  • Are there any areas of waste or unnecessary spending?
  • Are there areas where you are going backwards and getting into arrears?

Planning and Budgeting  – Where Will Your Money Go?

Once you have a record of what your current spending entails, get online to the Money Smart website and complete the budget tool. Be sure to include all your debts, payments, bills, and income. Mark payments and amounts in your calendar. Most bank online apps have the ability to schedule payments, so they come out when they are due, but if these are also in your calendar you won’t get any unexpected payments coming out. These regular payments can including things like:

  • Mortgage or rent
  • Car payments, car registration and insurance
  • Household/health insurance
  • Credit card payments
  • Loan repayments
  • Store card payments
  • Afterpay/ZipPay (remember that defaulting on these can effect your credit score)
  • Utilities such as gas and electricity (you may want to discuss bill smoothing with your provider – this is a regular payment over time rather than a massive and shocking bill each quarter)
  • Internet and phone

Bad Debts? Talk to the Credit Provider

The bottom line is that companies want to be paid. They are always receptive if you explain your situation, especially if you have, or are, experiencing financial hardship. You may be able to negotiate with them to reduce or put a hold on payments until you get back on top of things. Of course, you still have the pay the money back, but a hiatus on payments can help in the short term. Some credit providers will allow you to reduce the final figure if you can pay the debt outright. If they offer this, it may be time for debt consolidation. If you are too overwhelmed by the phone calls and letters, then talk to us about negotiating on your behalf.

Next Steps – Take Control With Debt Consolidation

When loans and credit cards get beyond what you can cope with in terms of interest and late payments, it might be time to call in help from the experts. Companies like Australian Lending Centre can offer a solution for a bad credit debt consolidation loan. This is where you negotiate with lenders for a reduced payout figure and then apply for a single loan that will cover all your bills in one payment with a lower interest than general credit cards and late payment fees. Having one simple debt consolidation loan payment to go out eat pay period is going to be a lot easier than trying to remember everything. The sooner you simplify your payments, the sooner you will be in an easier financial situation.

Money-Saving Tips

Turn off the TV

Are services like Netflix, Foxtel, Stan, Hayu and the iTunes store getting beyond ridiculous? Try cutting out all but the most popular one, to cut back. Turning off the TV will also help cut back on power and expose you to less spend-inducing ads. You might also have app subscriptions that you don’t need. Although these are small they can add up in a month.

Stop Hoarding and Start Selling

If you have closets full of unwanted clothes, try selling them online. A good clean out also helps you to see what your wearable wardrobe looks like so you can plan your clothes shopping to maximise your shopping budget. Also if you buy anything make sure it goes with the other items in your wardrobe. Take advantage of sales, why pay retail when most clothes will go on sale towards the middle of the season.

Look for those habits that add up

You can cut back on your habits, such as drinking alcohol during the week, smoking (probably goes without saying but your health and budget will thank you), buying coffees, can all save a surprising amount as well as having general health benefits. Limiting your drinking to the weekend can save hundreds a month, depending on your drink of choice. That bottle of wine after work at $15 a night can really add up over the week. Similarly, a $4 coffee each day is $20 a week. Make coffee at home in a keep cup and save money and the environment.

Stop using your credit card

By switching to using your debit card or cash for purchases, you will be more aware of your spending habits. It will also prevent the slide into bad credit debt.

Be frugal at the supermarket

Most of the time, buying in bulk or larger sizes are cheaper over time, so check on the prices for the larger sizes. Don’t shop with kids. Pester power is a thing and can increase your spend at the checkout. Never shop when you are hungry. Buy less meat, which is expensive, and opt for more meat-free alternatives, such as tofu, beans, and pulses.

Eat Smarter

With a busy life, planning meals can be a real chore, but while using services like Uber Eats seems like a good alternative, you are actually paying $5 on top of takeaway prices and it really can add up at the end of the pay period. By shopping in bulk, cooking healthy meals and taking the leftovers to work for lunch, you can save quite a lot each day.

Are You Missing Out On Government Payments You Are Entitled To?

Lastly, make sure you check all your entitlements with regards to government payments. As a low-income earner, you may be eligible for some form of financial support if you aren’t already receiving a government benefit. When every dollar counts it’s worthwhile claiming all you can. To check on payments and entitlements, check out the Department of Human Services. Even a small additional payment may ease your financial burden. Living on a low income is hard, but these payments are designed to help.

Small Changes with Big Returns

Once you have a clearer picture about where your money goes, you make changes to your lifestyle and start on the path to greater financial control, the happier, healthier and less stressed overall you will be.If you need help with debt consolidation, please get in touch. We’d love to hear from you.

Note: This information is general, and doesn’t take into account your specific personal and financial circumstances.

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Debt Consolidation

The Benefits Of A Consolidation Loan

Coping with debt is not only a financially challenging experience, but it is also emotionally taxing. Whether you have an unpaid medical bill, high credit card balances, a mortgage and many other loans, your financial responsibilities can obstruct your capability of living a balanced life. If you feel as though you are sinking in debt, you should consider a consolidation loan.

Consolidating your loans into one neat little package has many benefits.

Reduce your debt

When you have a lot of debt the expenses linked to interest rates and additional fees gradually accrue. As the costs accrue, you may become overwhelmed and financially stressed. A Consolidation loan allows you to incorporate all your debt into a single account. This may remove any additional fees linked to each credit card loan. In the long term, debt consolidation can reduce your debt and help you boost your savings.

Simplify your debt

Having separate credit cards will not only cost you more, but it can also be overwhelming and confusing. An added benefit of consolidation loans, is the financial simplicity of having all your finances in one place. It becomes easier to manage your payments and take control of your loan as you see everything in one, as opposed to having scattered debt.

Avoid bankruptcy

If your debt is out of control, debt consolidation can help establish a clear and structured path to paying it off. Taking control of your debt may drastically reduce your chance of declaring bankruptcy as you are proactively taking steps to remove your debt. Moreover, consolidation loans can aid in eventually improving your credit rating.

What are some risks of a Consolidation Loan?

Consolidation Loans are not an overnight solution to your debt problems. Consolidating your debt will serve as a starting point for you to improve your financial health. In conjunction with your consolidation loan, it is essential that you alter your spending habits and establish a savings plan. A budgeting planner calculator can help you keep an eye on your expenses and income. Simple actions such as switching on your payment notification can assist in reminding you what is coming up.

Consolidation loans can be confronting as you become more visually and mentally aware of your financial state. This will, however, help you to be more responsible and structured with your finances.

A consolidation loan typically requires collateral. Keep in mind that if you default on the loan, you may lose the collateral that was put forth. To avoid such cases, adhere to budgeting and stick to it.

If you have bad credit, your bad credit debt consolidation loan may have higher interest rates. Maintaining a good credit score will help you secure better consolidation loans. Depending on your situation, credit repair companies such as Clean Credit may actually help you remove any defaults, judgments or blackmarks from your credit file. This may improve your credit score and help you consolidate your loan.

The Bottom Line On Bad Credit Debt Consolidation Loans

Debt consolidation can diminish your total expenses and simplify your life overall. The most notable consolidation loans benefits include reducing financial stress and convenient management of debt. A consolidation loan will only work if you take control of your finances. Budget, plan ahead and stick to it.

Ready to simplify your debt?

Click HERE to apply for a debt consolidation loan.

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Debt Consolidation Bad Credit Loans Personal Loans Short Term Loans

Quick Loan Myths Everyone Should Stop Believing

If we are honest, there are a lot of quick loan myths in the loan industry which have negative perceptions. There are many misconceptions as some lenders employed unethical lending practices. As a result, a range of false or exaggerated perceptions has emerged. Still, you should know there are always two sides to every story.

1. Quick Loans Are Schemes That Rip You Off

To start with, due to the bad publicity that quick loans have received in recent years, most people have come to believe that these loan products are rip-off schemes. This one of the main quick loans myths.

Quick loans are suited for people that are in urgent need of cash but cannot access it elsewhere. Therefore, as long as you meet the loan repayment terms, everything is fine. Things are likely to get off track when you miss making repayments or you default – which applies to all types of loans.

2. Quick Loans Are Beneficial to Lenders Only

Moving on, another of the common quick loans myths is that providers of quick loans want to rip-off customers. However, considering that the lending criteria for these loans are really permissive, it makes sense for the interest rates to be as high as they are – especially since these loans usually don’t imply a credit rating check.

People with poor credit rating can seriously find these financing options life-changing. The only requirement you should meet is to have a steady income so that you can repay the loan in time. Also, since this type of loan doesn’t require collateral, the additional costs are greater than in the case of other types of financing.

3. Quick Loans Have Concealed Fees and Additional Costs

The list of popular myths regarding short-term loans continues. Many people are under the impression that payday loans come accompanied by hidden costs and fees the lender hesitates to disclose. The reason behind this assumption is that the majority of borrowers aren’t responsible enough to go through all the terms and conditions included in the signing papers.

It is against the law to conceal fees and additional costs – that is to say, all lenders based in Australia must be 100 percent transparent and upfront concerning the terms and conditions of the loan. Therefore, in order to avoid such scenarios, borrowers should take the time to scrutinise all the information about the loan product.

4. Quick Loans Are for People with Serious Financial Problems

Furthermore, there are also quick loan myths that short-term loans are provided for poor people with unstable financial situations. As mentioned, quick loans do not reflect financial stress, they simply offer people with an immediate alternative to cash.

Additionally, all types of people deal with financial difficulty. Therefore, it would be wrong to assume that whoever gets a quick loan is part of a specific segment of the population. As a matter of fact, when you need money for an emergency, it simply means that you’re going through something and there’s no other way in which you can get the money you need.

5. Payday Lenders Use Threatening Strategies to Collect Payments

While it’s true, to some extent, that some payday lenders use aggressive marketing techniques to promote their loan products, this doesn’t mean that they use threats to collect the payments.

Truthfully, reputable lenders, such as Australian Lending Centre are transparent and upfront regarding the terms of the financing. At the same time, reliable lenders never use these tactics. This merely means that you should do your research before picking out a lender out of the sea of lenders.

6. Taking Out Quick Loans Means That You’re Irresponsible

There is a common misconception that those who apply for a quick loan are financially irresponsible. Nevertheless, as long as you consider both the pros and cons of this decision, this doesn’t apply. It is implied that each financial decision has a range of pros and cons. It makes total sense for quick loans to have both pros and cons.

Evidently, the pros are that you get quick access to cash when you need it, without having to worry about the application process, adding collateral or a co-signer. When you need cash ASAP you don’t have time for these.

On the other side, the cons are that the interest rates are high and that, if you default on the loan, you might end up in financial hot water. Still, this applies for all types of financing – meaning that, regardless of the loan product you want to apply for, you should be 100 percent sure that your financial situation allows you to cope with making repayments.

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Debt Consolidation Financial Fitness

When your credit file is filled with unpaid defaults

In this article, we discuss ways to repair your credit rating through removing unpaid defaults. Are you experiencing financial hardship? Is this leading to unpaid defaults? You are not alone.

Identify the reasons why you have unpaid defaults

Understand that life happens and sometimes, you have to deal with some financial setbacks. Loss of employment, illness and relationship breakdowns may make repayments difficult. On other instances, it could be as simple as poor bookkeeping practices, not keeping your receipts, moving to another address or data entry issue son the part of your credit provider. But, whatever the reasons are, don’t let it deter you from pushing for a stellar credit rating.

Remember that creditors report that you’re on default when you are 60 days late with your monthly payment. It will serve as a warning to potential creditors that you have defaulted on your obligations and that you could do it all over again with another lender. Understand that paying off the unpaid defaults does not necessarily mean that you can erase those entries from your credit file. They will stay there for years. But, if you don’t pay them off, it could be worst.

Clean up your credit file

The best way to do this is to simply update your payments. If you have multiple credit card debts, and other consumer debts—you may think about debt consolidation. You can get a new loan to pay off all your debts. By doing this, you can reduce your monthly payments, possibly reduce the overall cost of the loan and simplify your payment. It could help you build up your credit again, not only by reducing your debts but by making it easier for you to pay on time.

By fixing your impaired credit file it would not only become easy to obtain finance but cleaning up your credit file can also give you a wider range of lending options. Remember that lenders approve clients based on their borrowing capacity. This does not only refer to their ability to repay the debts but on their credit score as well. You may also qualify for low-cost loans which may not be possible if you have a poor credit score unless you opt for specialized lenders who provide affordable loan products for bad credit borrowers.  Of course, the interest you pay on a loan would dramatically decrease as well.

Request a copy of your credit file

You can request a free copy of your credit file from the major credit bureaus in the country. Check them for errors, and if you see inconsistencies or inaccuracies. Sometimes unpaid defaults on your file are a consequence of an error made out of your control. You can file a dispute at the credit agency involved. Or, you may also file a complaint with your credit providers and ask them to update the report.  Sometimes, there are unjust listings or mistakes due to human error. So, make it a habit to ask for a copy of your credit file each year so you can easily contact the creditor concerned and talk over the issues with them. While it is possible to directly file a dispute with the reporting agency, they will not remove the negative entry without the approval of the creditor, or at least a valid proof that the entry is erroneous or inaccurate. There are also credit repair specialists that remove defaults on your credit file.

Consolidate your loans

You can apply for a second mortgage to consolidate all your high-interest loans into a single easy-to pay loan. By rolling all your debts into one—you could enjoy the benefit of saving money on unpaid interests and late fees. IT is also a lot easier to remember because you only have one due date to recall each month.

If you’re still unsure whether you could make timely payments because of your busy schedule—you can automate payments to ensure that you can pay on time. This will not only clear up your old debts and help you start with a clean slate—but debt consolidation can also help you rebuild your credit score fast your potential lenders would also see the improvement on your borrowing habits and you are most likely to qualify for low-interest and bigger loans in the near future.

Develop good financial habits to prevent unpaid defaults

After you understand the importance of paying off your debts, it may be time to look for the best financial product when you need them. Look for specialised lenders that offer accessible and affordable loans when you are finding some difficulty in managing personal finances because of cash flow shortage due to emergency situations. Afterwards, make it a habit to check on your budget and make some adjustments in order to save more and spend less son a day to day basis.

By sticking to your budget, you can stretch out your dollars and avoid debts. Budgeting is important not only for the low-income earners but to high-income earners as well. It is important to make the most of your incoming savings so you have some money to tap into when emergency situations like car repairs, urgent home renovation hospitalisation arise. By doing so, you can avoid being chased down by debt collectors for your unpaid defaults and you don’t have to rely so much on another loan to bail you out.

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Debt Consolidation

Save Money Without Skipping A Family Day Out

It is perfectly normal for borrowers with kids to skip payments to make room for family fun, especially on the weekends. After all, memories matter more than money, right? We came up with several free or cheap fun family activities with your kids so you can enjoy all the fun and still save money.

Wardrobe fashion show

Do your kids aspire to be models and fashion icons? Maybe, it’s time to set the stage and find a theme for your very own runway. Make your own invitations based on your theme. Ask them about the member of your family they want to be in the audience. If it’s their favorite grandma or grandpa, make sure that they’re ready to become fashion critics for a while. Look for suitable clothes in your closets. Ask them to take their pick and wear them with a twist. They can have fun as the designer or as the model. And, don’t be surprised if they talk you into making iconic moves too. After all, it’s your show. You asked for it.

Make meals together

The key to saving money and encouraging your kids to eat healthy foods is to involve them in cooking. There are many meals you can make under $10 and with the stuff you have on the fridge. Think staple items like milk, potatoes, eggs, bananas and onions.

You can make cheap and easy to prepare dessert, dinner, or snacks out of your stock. It’s also a great way to teach your kids on how to value your efforts of preparing meals for them. So what if they make meals as simple as a bowl of cereal or pancakes? It’s the act of doing things together that will make it extra special. Of course, no one will complain if you‘re able to make almost lasagna, chicken lettuce wraps or grilled salmon with lemon and asparagus spears from scratch.

Budget together

The sooner you involve your kids in family finances, the better it is for everyone. Make them understand the value of money. It will help them become responsible even at a young age. While you may not want them to know everything about your assets and liabilities, you can somehow get them involved by asking them to help you with the grocery list. It can also be a fun activity since you can let your kids ‘hunt’ some items in the pantry. Like, “spot the oil, milk or canned beans”. You can list things that you need for the week or month, and cross out times that you still have on stock and won’t be using anytime soon.

Milk the park

Use your creativity in making a walk to the park an exciting adventure. You can do this with your kids or with other parents. The more players, the merrier right? Are there poles where kids can twirl around? Look for logs (make sure there are no hidden insects in there), and let your kids be kids. Meaning, don’t worry too much about your laundry, let them get dirty for a while. You can take care of the dirt on their clothes later.

Older kids can also use this time to play with their peers while you actively join in the fun once in a while. Set rules however online casinos, that’s it’s a family outing, and not one of those days where they freely hang out with friends.

Relax and have a long and happy chat with your little ones. Remember, time travels so fast—before you knew it, they’re all grown up. Cherish moments like this—it won’t only give you more savings so you can repay your personal loans and other debts early, it will also enable you to create happy memories together.

There’s more…

Don’t think you have the time to do all the stuff above? Well—check out these fun activities below and take your best pick:

Treasure hunt

Prepare yourself to be a clue bearer. Spark up the competition by adding more clues as they get the treasures, until someone else wins.

Get ice cream

Find out who gets to finish first! Just keep tissues nearby.

Pullover adventure

Noticed some great places your kids would love while you’re driving? Pullover and spend a few minutes or even an hour watching them. It could be trains, airport, construction site or any other place on the side of the road. You can use this as a time to talk to your kids about what they see-make it educational yet cool as possible. Well, aren’t there take-offs and landings to watch? Look at the clouds—check on their shapes, give them names, and so forth. Your kids will surely come up with great ideas on what to do while watching those ‘hanging cotton’ on air.

Kids definitely love small and simple adventures. They’re kids and they like activities that make them happy and comfortable.

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Debt Consolidation

Plan Debt Consolidation For Your Business Loans

If you are like many Australians and are burdened with debts, you may want to plan debt consolidation as a solution. This method does come with its benefits, and it can be a real life-saver if you’re mounting debts from different sources.

Why You Should Plan Debt Consolidation

Maybe you’re still unsure about this, so let us chime in with some of the key benefits that debt consolidation can offer you.

  • Consolidation: There’s a reason for its name; debt consolidation does exactly that, consolidate. Instead of making multiple payments through different dates, you make a single payment based on a unified interest rate. This leads to money savings as time passes.
  • No Extra Charges: If you pay each debt individually, you end up with interest charges, penalties, extra fees, and don’t forget what happens if you pay late. Paying once per month leads to saving money that would otherwise go to these charges!
  • No Stress: Are you afraid of your phone or mailbox? I’d be afraid too if I had to deal with multiple calls and letters from collectors. Get rid of that stress by consolidating your debts into a single payment, the loan sharks won’t have a reason to bother you anymore.
  • Improved Credit Rating: If you have a streak of late or defaulted payments, then you shouldn’t be surprised to know that your credit score has been lowered. This, unfortunately, leads to being ineligible for strong financing. With consolidated, on-time payments, your credit score will start to rebuild, making you once again eligible for bigger loans!

As you can see, getting a debt consolidation would make your financial life much easier and positive, so, now you must be asking yourself “How do I get one?”

How to Get a Debt Consolidation with a Bad Credit File

The requirements to become a debt consolidation candidate vary greatly from one moneylender to other. Some lenders set the bar low, so qualifying is easy and hassle-free, others are much stricter, leading to higher requirements.

In general, typical banks won’t accept you if you have:

  • A bad credit file
  • Defaulted on loans
  • Filed bankruptcy
  • You are self-employed

If you have any of those so-called “slurs” on your credit file, don’t fret! There’s still a way!

Let’s go over the criteria used by lenders. Like we said before, the requirements (and the flexibility of each) vary from lender to lender, but there are “basic” elements that all agents consider before giving you a debt consolidation loan.

Credit Score Threshold

If you have a high credit score, lenders will be more than pleased to deal with you, but the contrary applies as well.

Now, don’t panic over this. You don’t need a “perfect” rating (and frankly, there’s no such thing), you just need to meet the expectations of the particular lender you’re dealing with.

Credit scores can be broken in thresholds. Your credit file might be regarded as “average” or “good” depending on which range it falls in.

All moneylenders have their own accepted threshold, some might tell you that you require at least 600, others might say that they only take 620 or higher.

If your score doesn’t match their expectations, you can expect a decline of your application.

Don’t take this as something personal, they need to keep their business going, and someone with a bad credit score might seem like a risk. You can always try a little convincing, and if that doesn’t work, try improving your credit rating. If that fails, seek another lender.

Credit History

And this the ugly part. Besides checking your credit rating, lenders will likely look at your credit history.

This will tell them about your behaviour, i.e. how often you default, how often you pay on-time, how many times have you paid late, and especially, how have you been acting in the last months.

The last bit is important, even if you had a habit of paying late or defaulting, if you can prove the moneylender that you’re actively trying to raise your credit score, they might decide to give you a chance.

How each lender weighs the factors is entirely up to them. To some, it doesn’t matter if you pay late or not, as long as you don’t default; the contrary applies as well.

Total Loan

Each company has their limits, both minimum and maximum.

Try to flesh out these details when looking for a debt consolidation loan, some lenders will decline your application if the sum you’re asking is too low, so prepare in advance!

Income

This is another important factor when applying for loans, not just debt consolidation.

Lenders will look at your financial stability, things like annual salary, length of employment and employment history.

You must be ready to provide evidence of your employment, your payslips, and your rental history.

Conclusion

A debt consolidation loan can be exactly what you need to get your credit score in shape again, and it will provide you with the breathing room to plan your financial moves in peace, away from collectors.

If you need some advice, call us now on 1300 138 188 or enquire with us today for a free consultation and assessment. We specialise in debt consolidation and have over 20 years of experience in the market.

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Debt Consolidation

Alternatives to Debt Consolidation

Everybody knows about debt consolidation loans. These are the handiest tools for indebted people seeking relief. However, there are more alternatives you can use as well. Debt consolidation loans are feasible but more often than not, they can turn very sour and can bury the person in even more debt when they are not careful in using their loan. The following five tools are alternatives to debt consolidation.

Let’s proceed and give a brief explanation on each of them, with an emphasis on what they do and how they do it.

You Can Consolidate Debt With:

P2P Loans (Peer-to-Peer)

In comparison with debt consolidation loans, which are taken from financial institutions, usually from banks, P2P loans are taken out from individual lenders. The greatest thing about these is that they have incredibly low rates.

When you’re already in debt, low interest rates should be your primary focus. P2P loans also have the advantage of being approved a lot faster than the loans for debt consolidation. This basically means that you could get the money in 48 hours or even less.

The term on these is often fixed, so you know you have until “then” to repay the debt. P2P loans don’t get anywhere near as much credit as they deserve.

Use Your Superannuation

When considering alternatives to debt consolidation, this should be used in a worst case scenario. When for some reason, you cannot get a debt consolidation loan nor a P2P one. You can consolidate your debt by getting money against your pension plan.

In this case, you’ll have to repay the superannuation, and not a lender, which can be more favorable, since you’ll benefit from low interest rates. This is like the Holy Grail of consolidating debt, but it is a risky move, and you should give it some extra thought.

Transfer Your Balance

If you’ve got credit card debt, you can get rid of it by moving it to a new card that has a better interest rate. This way, it will be easier for you to pay it. In order to get such a card, however, you must have a pristine credit score.

Here’s a secret: you can get a card that has 0% interest rate. Yes, 0%. This is some sort of discount, and like any other discount, it will expire. If you do get it, make sure you’re using that period to rip through your debt.

If you don’t, you’ve wasted a huge chance of consolidating your debt, and you might not get another one.

Consolidate against Your Home Equity

Again, a very dangerous move, because you put yourself at risk of having to deal with foreclosure. Like in the case of borrowing against your pension plan, here you’ll be paying yourself back, too.

This comes as a package deal with lower interest and peace of mind because you won’t have to come to terms with god knows what dire creditor. Be careful to the fact that there are two choices you can make when borrowing against the equity in your home.

You can either get an equity line of credit or a home equity loan. Both can be used for debt consolidation, but they have different features.

Use Your Life Insurance

You can borrow money against your life insurance, as well. This, too, is risky, so you should be very cautious what you’re doing if you have no other option. The thing is that you can borrow the sum of the policy, not a dime more.

You can consolidate your debt with it, of course, if you have enough money in the insurance, to begin with. The good thing about this option is that you won’t need to make repayments.

You will have to repay the debt, obviously, but not through traditional means. This is due to the fact that the money in the insurance is yours. You can choose not to replenish the money, but you and your family will have no coverage in case the unpredictable happens.

This method is the less efficient because it’s less likely that you’ll have enough money in your insurance to be able to enact debt consolidation. If you do, you’ve just saved yourself.

If you are still unsure about alternatives to debt consolidation then talk to a specialised loan consultant and ask for their opinion to find out if you should go with a certain method or not. One thing is sure: any of these is less perilous than a debt consolidation loan anyway because they all come with low-interest rates.

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Debt Consolidation

Tips on How to Qualify for a Debt Consolidation Loan

If your credit score does not meet the minimum requirement of the bank, and you don’t have a regular income and you are spending more than 40% of your income on debt repayments, you may not qualify for a debt consolidation loan. Banks often reject applications of those with unstable income and negative credit entries on their credit report, unless they have sufficient security for the loan. Learn how to qualify for a debt consolidation loans when you have bad credit.

Check your credit history:

If you want to get a cheaper consolidation loan, you need to prepare your credit file. Though bad credit holders can still obtain affordable loans, it is advisable to know what’s inside your credit file. For all you know, you are just having a bad credit score because of wrong and inaccurate entries. It will also give you time to explain to your potential lender why and how you ended up with that score.

Many lenders understand that some life events can hold you back financially. Use the information in your credit file to explain your circumstances and to convince your lender that you are still capable of making payments despite certain financial setbacks in the past. So, grab that file and use it to have a better negotiation with your lenders. Get the loan product and loan arrangement that could help you get away debt-free after the repayment term.

You want to get rid of debts:

If you wait for a longer period to deal with your debts, it may get out of hand. Debt consolidation is advisable for those who are awaiting a crisis if they don’t eliminate the debts. It is true that bad credit is a huge issue in taking the loan. But, if you choose the right lender you can get access to the much-needed consolidation loan without making your credit score an issue.

Let’s say you have previous debts under five different lenders. Now instead of paying monthly instalments to each of them, you will get a consolidation loan pay the instalments to that new lender. The main purpose of taking the loan is to save money by eliminating all those debts with a higher interest rate in exchange for a bad credit debt consolidation loan with a lower interest rate.

Present valuable collateral:

Do you have a new car, boat, home or any pricey asset that the lender can sell or liquidate in the vent you default on payments? If you want quick approval loans, secure your consolidation loan with a pricey asset. Lenders no longer bother to look at your credit score when you secure the loan. They may also give you affordable interest rates which are comparable to the rates offered by banks. In fact, you may get around 14% APR or lower with good security.

You have a good repayment plan in mind:

While this is not a requirement per se, it is advisable to have a plan before you apply for a loan.

Some debt consolidation companies offer their services to borrowers who are struggling with debts. But, you can do it yourself. In fact, if you have a sound debt repayment plan in mind, you simply need to apply for a loan to consolidate your other smaller loans, and you can repay it within the allotted time frame.

Debt consolidation is only a suitable option for those who want to end up with more cash at hand at the end of the month, and with lesser debts to pay off. It is because there are many people who tried to consolidate their loans but ended up with more debts because they have chosen a poor debt structure and they don’t have a sound debt repayment plan in mind.

So, here are some questions to ask yourself before planning to consolidate your loans:

  1. Do I have the discipline to avoid using my existing credit cards the moment I paid them off with my consolidation loan?
  2. Can I stick with my debt repayment plan so that I will not end up with more debts in the process?
  3. What will I do to increase my income?

A loan is a loan-regardless of its type. That means you have to pay it back. Make sure that you use the proceeds of the consolidation loans wisely, not only to repay all your high interest and smaller debts, but to improve your financial life as well.

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Debt Consolidation Financial Fitness Financial Planning

Debt Consolidation vs Creating Your Own Repayment Plan

Choosing the right financial recovery tool can be quite a headache! What’s the best choice between debt consolidation and creating your own repayment plan? What are the factors to consider when making a decision? Read on and find out.

Debt consolidation

If you have multiple credit card balances or debts it is advisable to take out a new loan to pay them off. You can save money or pay your debt sooner by borrowing money at a low interest rate to pay off high-interest loans or credit cards. Aside from making fewer payments each month, you only have one due date to recall–this lessens the likelihood that you’ll miss payments. But, if you are not careful in choosing a reasonable debt consolidation loan, you may end up deeper in debt because of high interest rates or hefty fees and penalties. So, before you choose a debt consolidation company, make sure that they are interested in educating you on how to use your debts wisely to achieve financial freedom as much as they are interested in lending money to you.

repayment-plan

DIY debt repayment plan

Do you have a knack for DIYs? Then, think about getting out of debt without asking for external help. If you’re always late on making payments, or if debt seems too much to handle—it’s time to take the reins. But fixing your debt problems without professional help is a bit challenging for 3 reasons:

  1. You’re in this mess because you created it.
  2. You can’t pinch your skin hard enough. When it hurts, you’ll surely let go. The same thing goes to repayment plans. It’s hard to pressure yourself-because you may change the rules when it becomes difficult to follow.
  3. If your debt is too high and your income is low—you may end up getting a new loan to pay off the high-cost debts. That means you’re paying a loan by a new loan while leaving all other debts unpaid.

Here are some useful tips when choosing between debt consolidation and DIY repayment plan:

Reflect on what you did in the past 3 years

It’s so easy to label our “year” as “tight” or “bad” when debts pile up and income lessens. But there might be goals you’ve met and lessons you learned along the way. Make a blunt and honest assessment not just of the things that went “wrong” but your accomplishments as well–small or big, they don’t matter.

What were you hoping to achieve 3 years ago? Maybe it was a new house or car, a sales goal or a vacation. List down at least 5 things you planned to achieve and whether they were realised or not. If not, write down two reasons why you didn’t achieve them. Next, list 2 things you can do to achieve it next time—this time-debt consolidation and DIY repayment plan. Focusing on those two main strategies can help you come up with a tangible solution for your debt problems.

change-life

Check your readiness to change your financial life

Maybe you’re set to make some lifestyle changes today because of escalating interest rates, late fees, and frequent calls from creditors and debt collectors. But, what would happen if you only have one creditor to pay each month? Will you go back to your old borrowing and spending habits? If you make your own debt repayment plan—how determined are you to stick to your goals and resist the urge of adjusting it when they’re getting harder to follow?

Before you can truly determine if you are ready to consolidate your debt or make your own repayment strategy, take a step back and give your most honest answer to these questions first:

  1. Why do I want to consolidate my debts or follow a DIY debt repayment tactic?
  2. What will debt consolidation do that my current system of debt repayment cannot? Or, what other things can I do to make my credit status better, that I am not currently doing today? It’s because if you want to make things work, make sure that you get rid of the old strategies that don’t work and replace them with steps that can actually work. If you have many debts and you cannot manage them well because of varying interests and due dates, then why don’t you try debt consolidation? If you have tried hiring professional help in the past but it didn’t work out, maybe it’s time to consider making your own repayment strategy.

Ask Yourself

How much money do you have right now? Can you afford to buy what you need and pay for all your monthly debt repayments? If you’re hard on cash, then it is advisable to get debt consolidation. You will be able to save money on interests and you have a good chance of reducing your monthly repayments. The same thing goes to those who have enough funds but they have a poor debt strategy. Debt consolidation helps you pay on time because there’s only one debt to pay.

Contact Australian Lending Centre today to learn more about the most reasonable debt consolidation program and the debt repayment strategy suited to your condition. Apply today or call us now on 1300 138 188.

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Debt Consolidation

Secured Loans: Planning Ahead

Secured Loans

Secured loans are debts that you secure with a collateral-like a home, car or any other property. In case of defaults, your creditor will take possession of the assets used as collateral and may sell it to recover the amount they loaned to you.

Because you are granting your creditors a portion of your rights to a specified property, it is important to consider several factors before you get a secured loan.

How do you prepare for loan applications so that it becomes a solution rather than a problem?

Let’s start with the things you wish you had known before you signed up for mortgage, home equity loans or your credit cards.

 “They said it’s a low-interest loan, but my debt keeps growing and so is my interest rate.”

“They told me I have zero interest in 1 year, but my credit card statement says otherwise”

“I took out a second mortgage to help me pay for my first mortgage, but now – they’re the one filing for foreclosure.”

A secured loan is a contract, and not a leap of faith. So, there should be no surprises at all. You can always avoid them – even the most difficult ones by following these steps.

know-the-company

Get to know the company.

The most important thing when you’re getting a loan is the company itself. You are borrowing from a lender who has the right to go after your property. They have the right to make you homeless when you miss payments. If a company has a good reputation, keeps up with its promises and puts their customers’ interest on top of their own – then you have nothing to worry about. But, if you are not sure whom you are dealing with, there’s a big chance that they will run away not only with your hard-earned money but with your collateral as well.

Preparing for a loan, is largely about two things: making sure you are dealing with the right lender, and making sure you know what you are getting into.

Read before you sign and communicate doubts

If you don’t understand the terms of the loan agreement, don’t sign them without asking for a detailed explanation of what they are. No matter how urgent is your need for cash, take time to read the terms of the loan, and ask questions about certain provisions that you don’t understand.

You have to be able to talk to your loan officer about important things that will have a huge impact on your future finances, such as the interest rates, the late penalties and how much you’ll end up paying if you miss payments for several months. Good communication is key, not only to personal relationships, but to a business relationship with your creditor as well.

You can go deeper to issues like-what happens when I default on payment? What are the procedures that the company will do to collect payment from me? Will you send my account to a collection agency? We don’t know what will happen tomorrow, so it is important to clarify things with your potential lender even before the contract begins.

track-spending

Track your spending

Your budget worksheet is not a wish list. It is a guide of what you are going to do with your money, in a smart way. When you create it, make sure that you track your expenses for at least 30 days. Record every purchase and every bill you paid. The moment you realized where your money is actually going, you can make an educated decision about how you can pay for a secured loan. Many borrowers make the mistake of becoming too financially impulsive, that they take out loans, put their homes and cars at risk, without thinking about how they can adjust their budget to make way for the monthly repayments.

Here’s another tip when setting budgets. Do not deprive yourself of simple pleasures that will make your life boring. You may end up sabotaging your own budget and losing the interest to earn money. Self-deprivation is the easiest indicator that your budget is doomed to fail. Instead, allocate your money wisely. Moderation is important even in saving money. If you’re going out every week, you can try having fun with your friends every 2 weeks or you can still do it every week, but in a cheaper way. Instead of going out, how does a home cooked meal sound?

Consolidate your loans.

It is the easiest way to ensure that you can pay on time. Having multiple debts to pay is a bit confusing and overwhelming especially if your budget is tight. If you want to get ahead, a debt consolidation plan can help you pay down all your existing debts, save money on interest payments and set them aside for savings.

Learn more tips on how to use your secured loans wisely by making an enquiry today!

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Debt Consolidation Debt Management

Is Debt Consolidation better than Bankruptcy?

When you have a lot of debts with different interest rates, the first thing you will think of is debt consolidation. However, there are certain situations when debt consolidation doesn’t make the cut and other options seem more feasible. Is bankruptcy one of them?

We will compare two financial services – debt consolidation and bankruptcy – and we will see which one is better for your situation. Note that before you make any request for these types of financial services, you will need to contact an expert to get an idea of what to expect. He/she will also tell you if it is a good idea.

Debt Consolidation

Debt consolidation is a great tool you can use to save money and leave your credit rating unaffected. Debt consolidation will take all your debt payments and transform them into one payment. The idea behind this method is to make the monthly payment and the interest rate lower. You can consolidate your debts through a secured or an unsecured loan. This service requires a certain fee but in the end, you might save more money than before, and you will regain control over your finances.

Here are the pros of Debt Consolidation:

  • Your credit rating and reputation are protected. Your credit score won’t be affected, and you won’t be bankrupt, meaning that your financial status won’t be made public. Bankruptcy records are easy to find and view, and this kind of reputation can affect your future financial endeavours.
  • You can simplify your debts. This means that you will focus on one payment with one interest rate, but you will also get to pay every debt in one go. In other words, you will no longer have to worry about missing a payment or paying it later than usual and suffering the penalties.
  • Debt consolidation will also let you keep your credit cards, unlike other services.

Cons of Debt Consolidation:

While debt consolidation is an excellent method of regaining control over your debts and economy, you could end up paying more in hidden fees, and you might even lose the property. Here are some things to consider:

  • Hidden costs: Here is a thing that many people don’t take into consideration – the loan term. When you apply for debt consolidation, you will pay less every month and have a lower interest rate, but the loan term will be increased. If you stay in debt for an extended period, you may end up losing more money in the long run.
  • Losing property: If you default on your loan, you can lose your car or even your house. Depending on the agreement you signed with your lender, if you default on your consolidation loan, you might end up losing a lot more than just money.

Bankruptcy

Though bankruptcy sounds scary, it isn’t the end of the world. You can eliminate certain debts when filing for bankruptcy. Here are a couple of things to consider when filing for bankruptcy:

  • When you file for bankruptcy, the creditors cannot harass you or take legal action against you. That means that you also are protected against foreclosures or repossessions.
  • Back to square one: Bankruptcy will eliminate most of your debts, and you can get a fresh start. Depending on your financial situation, you can even keep your car and home and pay them at a reduced rate.

The Negative Part about Bankruptcy

Like any other financial service, bankruptcy has its negative factors that you need to consider before applying for it. Here are a couple of things you should check:

  • Credit rating: Your credit rating will be lowered depending on the type of bankruptcy you apply for and your situation. Your credit report will show the bankruptcy anywhere from seven to ten years. Of course, you may already have bad credit seeing that you owe a lot of money and you are bankrupt because of it.
  • You can have a fresh start once you receive your bankruptcy discharge, but until then, you will have a hard time with lenders and other financial institutions.
  • Your reputation: Bankruptcy can be easily discovered by your employer or people who are associated with you, business-wise.
  • Financial sacrifices: You will have to sell your possessions if you want to be eligible for bankruptcy.

In the End

So, is debt consolidation better than bankruptcy? It really depends on your situation and what you want to achieve.  If you want to learn more about the benefits of debt consolidation call us on 1300 138 188 or visit the Australian Lending Centre for expert advice.

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Debt Consolidation

Debt Consolidation Facts Every Aussie Needs To Know

Are you looking for a debt consolidation loan to absorb all your outstanding utility bills, unpaid defaults and high-interest credit card debts? If so, there are many things you need to learn about debt consolidation before you sign that dotted line on the agreement. Read our Debt Consolidation Facts below.

It is almost impossible to get an unsecured debt consolidation loan to help you pay out old defaults and existing ones.

Most lenders prefer secured loans which have lesser risks of nonpayment in case of default. However, there are financing companies offering unsecured debt consolidation loans to people with a clean credit file. That’s one of the perks of having a good credit score. Lenders entrust you with their money because of your good repayment history.

If you are less likely to default on your loan, then lenders can’t see reasons why they won’t grant your loan application despite the absence of collateral. But, if you have poor credit, lenders would consider you as a high-risk borrower. They have to find a way to compensate for that risk, by requiring you to attach collateral like your home as a security for your loan. If you default on your payment, they will go after your property.

Here’s the good news – Australian Lending Centre offers personal loans that you can use to consolidate your defaults and all other existing loans. This type of unsecured debt consolidation loan can get you up to several thousand dollars. Even if you may be assessed as a bad credit borrower because of a poor credit score, we will ensure that your existing debts and defaults are paid out, at an interest and loan terms favourable to you.

secured-loans

Can I secure my bad credit debt consolidation loan with a car?

If you want to get a higher amount of loan, you can apply for a secured debt consolidation loan.

You can also offer the lender your motor vehicle or any other valuable property accepted by the lender, as a security to get higher chances of getting a debt consolidation loan to pay your unpaid defaults, personal and business loans as well as utility bills. There are many lenders who are also more than willing to cater to your financing need if you will secure the loan with your car. But, your car has to be reasonably current and it is free from loans, or other credit issues. But, if your car secures some credit issues, with financing against it – then it will not qualify as a security for your loan. It must be reasonably current as well, with no hidden defects. How much does the debt consolidation loan cost if it is secured by a car?

If you‘re looking for a secured debt consolidation loan, then you may have to consider the actual value of your car. Remember that the value of the loan is only a percentage of the value of the car. It cannot go higher or be equal to the car’s value.

Family and friends can bail you out of financial troubles.

Here’s one of the debt consolidation facts that often gets forgotten… Sometimes, it is easier to borrow money from your loved ones or ask them to borrow money on your behalf. If you are married and your spouse has a healthy credit file and sufficient income, he or she can take a personal loan and pay all your debts. Parents can take the loan on behalf of their children and the other way around. This option is much better than getting an income guarantor. But, not everyone is willing to shoulder your loan obligation. It is not also advisable for people who have debt repayment issues. People, who have been in a debt rut for years, also need to face their own financial concerns instead of relying on their loved ones for help. In fact, it is very unhealthy to bail out someone who keeps on mismanaging money every time he or she is caught in a debt trap.

mismanage-money

Debt consolidation is only a first-step solution to debt management problems, but not a cure-all.

If you want to enjoy immediate debt relief, consolidate your debts. It simply allows you to roll all your debts into one big loan. You get to pay all defaults, and you will still have a few extra for your needs. But, will it cure your debt problems? No. If after consolidating your debts, you still take out new debts and fail to keep up with the payments, you may still end up trapped in a cycle of debt.

Getting into debt is not an overnight misstep. In fact, it takes several debt defaults before you get a poor credit score. That is why debt consolidation can only address the problem on the surface. It pays all your debts and gives you spare money for your immediate needs. But, to get rid of debt once and for all requires financial discipline and good money management habits. That’s why Australian Lending Centre assists borrowers in making a financial decision not only in terms of loan product selection but in determining the loan amount and payment schedules appropriate for your situation.

Contact the Australian Lending Centre today to find out if debt consolidation is the right loan solution for you.

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Debt Consolidation

What to Choose: Debt Consolidation or Refinancing?

Debt consolidation vs. refinancing is an old skirmish on which people do not seem to have reached any consensus. Should I get a debt consolidation or should I refinance? The answers can differ according to what situation you are in.

First of all, refinancing and debt consolidation are two distinct notions with different outcomes, obviously. There are certain circumstances that warrant the use of these two tools. In the following, we’ll see when you should consider refinancing rather than debt consolidation and vice-versa.

Debt Consolidation vs. Refinancing

At first glance, refinancing and debt consolidation look pretty similar, but when you delve a little deeper, things are actually slightly different. The only similarity between them is that both are used for alleviating the burden of debt.

A debt consolidation loan will roll all your existing loans into just one with potentially better interest rates and a better term. However, debt consolidation is recommended when all of your loans have been taken from the bank. It is an easy way of getting rid of too many bills at the end of the month and re-establishing a repayment schedule.

Refinancing implies changing an existing loan with another one. Again, for the purpose of getting better interest rates. This is usually used when one is dissatisfied with the terms of his loan, be it a mortgage, car loan, personal loan or business loan.

different-loans

Debt Consolidation or Refinancing – When to Use Which

When you have multiple loans taken from a bank, you should consider debt consolidation. Private lenders can offer only personal loans, which have a lot fewer perks than their federal counterparts.

Moreover, you might not even be allowed to change a federal loan for a personal one, due to the policy of the bank you took your loan from. In such a circumstance, it does not really help to look for the perks of a debt consolidation or refinancing option.

Now, if you have a loan you’ve taken from a private lender to begin with, refinancing is the best idea. You can always look for better deals and change your loan if you’ve found another one with better stipulations, i.e. lower interest rates, tailored payday, longer term, etc.

Refinancing is also recommended when you have a reasonably small debt. In this case, it would make no sense at all to consolidate your debt. Debt consolidation should be used when your debt is huge, and the interest rates contribute to keeping it in place rather than dissolving it.

Using them Incorrectly

Now that we know what the advantages of using these financial services are, let’s take a closer look at what can happen if we use them incorrectly. Let’s start with the most popular financial service used by those who have multiple loans: debt consolidation.

Debt consolidation is a great service when used right, for example when your debt is massive, and you have a lot of loans with a high-interest rate that you need to repay. However, there is a chance that you can increase your debt by consolidating your credit card balances.

credit-card-balances

You can also lose your property if you get a debt consolidation mortgage and fail to make the payments on time. The lender has the right to foreclose your property and take it for good if you cannot pay the debt.

Refinancing can also be tricky if it’s used incorrectly. There are a lot of refinancing traps that will get you into deeper debt. Check the documents before signing them. Remember that when you refinance a loan, a lower interest rate is not the only thing you are after. Check for other taxes and fees that come with this new loan.

Also, dodgy lenders can present attractive refinance options only to get you to sign an agreement that will render you unable to make the repayments. Ask a financial expert about the document you are about to sign. He might save you a lot of money and stress in the long run.

Debt consolidation vs. refinancing is a great topic to discuss as long as you also look at the downside of each service.

You can find out more about debt consolidation and refinancing on the Internet or from financial experts.

Conclusion

Refinancing and debt consolidation are both really great tools for people in debt, but they’re not the same, and their outcomes are different. When you have multiple loans with exorbitant interest rates, debt consolidation is the way to go.

When you have just one personal loan (or any type of loan on their own), refinancing is the better choice. Therefore, there is no debt consolidation vs. refinancing winner carved in stone. It all depends on your situation.

More on the subject can be learned on www.www.australianlendingcentre.com.au. There you can read specialty literature on various financial topics, refinancing and debt consolidation inclusively.

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Debt Consolidation

Will Debt Consolidation Put an End to Your Financial Problems?

In recent years, debt consolidation has been discussed on all sides by people in debt. On one hand, it is seen as the perfect solution to dissolving debt quicker. On the other hand, it is regarded as something one should do only as a last resort. So can debt consolidation end financial problems?

The answer to this is both “Yes” and “No.” How is that possible? Well, we’ll see the reasons immediately. Financial tools are, most of the time, two-edged swords.

Whatever you do, not acquiring enough information can get you in serious trouble. Read this carefully in order to know what the deal with consolidation is.

Why “Yes”?

Debt consolidation can end your financial problems, but there’s a very important condition you must respect if you want to do that: you must correct your financial behaviour. You probably need consolidation because you’ve done some serious mistakes in the past.

As long as you don’t build up even more debt by defaulting on your consolidation loan or by missing on monthly repayments (again), your problems will eventually diminish, then disappear completely. In this circumstance, yes, a consolidation loan can be very helpful.

A consolidation loan does not solve anything by magic. Most people take this type of loan for all the wrong reasons. Misinformation can be blamed for this. High expectations without the contribution of actual behavioural changes in respect with spending recklessly are also to blame.

reckless-spending

Why “No”?

There are many cases in which consolidating the debt is simply not the recommended thing to do. For instance: when it does not come with lower interest rates than those you are already paying, it’s obviously not much of a relief.

Moreover, as we’ve mentioned, debt consolidation is not a magical formula you simply recite and your debt clears out by itself. Another important aspect why debt consolidation is dangerous is that it’s often secured on one of your assets.

In other words, you can easily lose your house if you don’t pay the consolidation loan. You can clearly see that a consolidation loan can get you in more debt quicker than it can get you out of the existing one. This is not a very pleasant prospect, is it?

Why is Debt Consolidation a Double-Edged Sword?

The problem with many financial tools is that the clients don’t really understand how they work. Of course, not everyone works with money, and the more the client knows about the financial service he/she is getting, the bigger the chances for him/her to use it advantageously.

When it comes to debt consolidation, it is important to know that your debt will still exist in the near future. It will not go away instantly. However, it can be transformed into a more approachable one, financially speaking. You can get a lower interest rate and a lower monthly pay, depending on the lender you sign with.

While it is a popular method among those who have financial problems, you still need to ask an expert about all the advantages and disadvantages. A debt consolidation service might look excellent on paper, but in reality, it can double your financial problems, even if you read the document twice.

Also, check the market before jumping on the first contract. When it comes to financial services, you will need to get the one that gives you the biggest advantage, especially if you have financial problems.

financial-problems

You should also look out for shady lenders. Whenever a client accepts a financial service, the lender gains some profit. However, some lenders will present you a service that may look great on paper, but you will never be able to pay it back on time or in full.

That’s when you will start losing money fast; you’ll lose your car, your house or other assets. So, be careful with these lenders. A debt consolidation offer where your debts magically disappear is most often than not a scam. It is in your interest to get informed.

Concluding Remarks

Debt consolidation makes sense. Not all the time, but it does. If you approach it thinking that your debt will be gotten rid of overnight, you are just lying to yourself.

The most important thing about this type of loan is that it is not worth it if it does not offer lower interest rates and possibly a tailored repayment schedule.

And of course, it’s of no help if you continue to indulge in the same behaviour that got you indebted in the first place. Hopefully, your consolidation loan will indeed help you pay off your debt sooner, but you must be willing to discipline yourself.

You can read more on the subject on www.www.australianlendingcentre.com.au, as well as receive advice from professionals in the field.

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Bad Credit Loans Business Loans Debt Consolidation Debt Management

Should I Get Cash Now With Bad Credit?

Over the years of advising young entrepreneurs in debt, I realised that there is one thing that is stopping them from achieving their financial goals – debt mismanagement. A lot of people think that for you to build your business you need to get more debts, despite having bad credit. Others also believe that getting into debt puts their business at risk of going bankrupt. So, how would you know if it is wise to get cash now with bad credit or not?

Here is a fact. Debt is simply a tool to build your business or to ruin it. More debts won’t make you bankrupt. Not knowing how to handle your debts would.

The scary truth of having bad credit is that it reveals your inability to handle your financial obligations. If you are having problems with debt management, more debts will only amplify your problem. But, does it mean that we shouldn’t get a loan now with bad credit? The answer is a very loud–NO. Getting a cash loan can be your only way out – but you have to learn first on how to manage your debt wisely.

Basics of debt management

Depending on where you are currently in debt, here are some tips to leverage cash with a bad credit loan.

Acknowledge your debt problem

It is impossible to create a solution for a nonexistent problem. If you don’t see a bad credit score as an issue, then you may not be so adept in finding ways to address it.

Trace the causes of your bad credit score

Request for a copy of your credit score to check which of your existing debts were left unpaid, delinquent and if there are debts which do not belong to you.

Create a budget

Before you decide on the loan amount, calculate the actual amount of money you need not only to settle your outstanding debts but to meet your existing needs as well. If you will use all of your money to pay your bills without allotting something for a new source of income-how can you pay the loan back? Downsizing and making other lifestyle changes may not be enough. It is also important to increase your cash flow either through creating a passive income or investing in a business.

How will the cash loan impact your current financial state? Do you have a stable stream of income or is it at high risk as well? Understanding the potential risks facing your wallet on a short and long-term basis is important in determining the amount of loan you need to improve your finances. Once you’ve mapped out the threats to your financial stability, that’s the time you can create a concrete debt management plan.

Create self-satisfying goals

Money is not a very attractive goal. But, it is surely a powerful and persuasive tool to reach your goals in life. If you will only work to pay down debts, you may not be too eager to invest and improve your way to get there. However, if you get cash now with bad credit not only to meet your needs but to reward yourself with a financially stable life, you’ll surely smile on your way to financial freedom.

Learn more about cash now with bad credit by keeping in touch with the friendly staff at Australian Lending Centre.

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Debt Consolidation

What To Do if Your Debt Consolidation Application Is Declined

Debt consolidation can help us out of an unpleasant financial situation. Even so, we rely too much on these types of financial services to get back on our feet and rarely do we learn our lesson.

But what happens if your request for debt consolidation is denied?

It can be a nightmare for your finances and can slowly turn into a storm of debts. Is there a solution when such a request is denied? Let’s find out:

What Do You Plan to Achieve?

Debt consolidation is used to gather all debts into a single one with one interest rate and a one-time payment per month. It can make a difference in the long run, and you won’t have to pay a huge interest rate. So, this service is something to look for if you are having troubles paying your debt.

What You Should Do If Your Debt Consolidation Application Is Declined

The first thing you should do is not panic. You can still do a lot more to save your money. Ask your lender why your request was denied. Was it because of bad credit? Was it because you have too many defaults? When you get that information, try to change some elements from your credit file.

For example, if you have bad credit, start paying your debts. If that isn’t enough, go to a credit repair service. Maybe the request for debt consolidation was refused because the lender saw your income and thought that you are a risk for him. Talk to him, bring evidence and convince him that this is not the case.

other-options

Other Options

You can apply for a loan to help you out with an emergency or pay some debts. You can also request a home loan repayment arrangement if you are in financial difficulty.

Saved by a friend – guarantors

A guarantor can help your situation. Thanks to him/her, you can increase your borrowing power. Your request for a loan can get accepted if you find a guarantor with a clean credit history. While it may seem tempting to get a big loan, now that you have a guarantor helping you, it’s best to borrow within a certain limit.

Failing to do so can result in other future debts, and next time there will be no guarantor to help you. And you will also get him/her into trouble too. So please, analyse your spending habits, your income and how much you can borrow.

Talk to a credit counsellor

I know you are short of money. But do not worry, since there are plenty of places where you can find free counselling sessions. And in situations like this, the advice is always welcomed.

During a counselling meeting, you will explain to the expert the situation you are in and what you are looking to achieve. Feel free to ask him or her all the questions that come to your mind and also, offer all the information needed to assess your financial problems. Some details might be more important than you think.

The credit counsellor will offer you some advice and options according to your financial situation, and all you have to do is choose the one that suits your needs and possibilities better.

budget-living

Live on a budget

A simpler solution that does not involve making other debts is educating yourself to live on a budget; at least until you get rid of some of your debts and become trustworthy again in the eyes of the banks. Make a plan for your expenses and set limits. It is essential that you stick to that plan, or all your work would have been in vain.

Take advantage of your assets

Another method you can use is taking advantage of your assets. Depending on your debt and the assets you own, you can find this option very flexible. For example, selling your car can help you control some of your debts, and you’ll have a chance to apply for a loan.

If your debts are more serious, you may have to sell your house. You will cover all your debts and still have some money left so you can start over. But this is entirely up to you and your situation. If selling does not appeal to you, you could get another mortgage in case you already have one.

Final Thoughts

So, whenever your application for debt consolidation gets declined, you will be prepared if you keep these tips in mind. For more information, you may contact us for a free consultation and advice. We may be able to offer you that debt consolidation service that you need so much, or at least some tips on how to fix this problem. Check out our offers, stay positive and your problems will get fixed in no time. Call us now on 1300 138 188.

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Debt Consolidation

When Is a Debt Consolidation Loan Feasible?

Debt consolidation loans are meant to pack multiple small loans into one that is more manageable. It is one of the most common forms of debt relief. However, not many people seem to know when a debt consolidation loan is feasible.

There are some things you must take into consideration when you’re tempted to amass your loans into one.

So when is a debt consolidation loan feasible?

  1. When you pay extremely high-interest rates

Credit cards, usually, have the highest interest rates. When you need to pay a lot of interest, the debt is growing at an alarming pace, faster than you can repay it. Debt consolidation loans, on the other hand, might offer you better interest rates altogether. If you pay more than you can afford in interest, you should definitely consider a consolidation loan.

  1. An endless number of bills

Getting tons of bills can make it so easy to forget to pay a certain debt. You simply cannot keep track of everything. A consolidation loan is feasible if you’re in such a situation since you’ll be receiving just one bill until you’ve dissolved your debt. This will automatically lead to better management of your time and money.

  1. When the loan is unsecured

If a loan is “unsecured,” it means that it is not attached to any of your assets, like your house and car. Secured ones are certainly not a good idea because if you fail to repay the debt, you could get homeless or devoid of the asset you’ve secured the loan on. Try to stay away from secured loans at all times. It’s just better to find another way to pay your debt without risking your house as collateral.

  1. When you’re willing to repay for a longer time

Debt consolidation loans allow you to pay less than you paid on your previous debts, but that means that the repayment is going to take longer. Are you willing to do that? This can be a hassle for some people who want to get it over with as fast as possible. Still, if you have no problem with that, then you should consider taking such a loan.

  1. When you don’t end up paying more interest

Yes, it is possible to end up paying more interest on a consolidation debt than you would’ve paid for all the other separate loans. Surely, that will impact your credit score if you fail to pay. And before you know it, your credit rating will be so damaged that you will find it even harder to get another loan in the future.

Debt consolidation loans can truly be a great help, but you must know when you need them. Moreover, there are many other aspects that come into play, like the ones mentioned above. So, review your situation thoroughly before you take such a debt consolidation loan because it can have disastrous consequences if you go for it lightheartedly.

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Debt Consolidation

Tips For Consolidating Debt

Forget your past money management mistakes; financial freedom is about the future. If you want the tips for consolidating debt then careful examination of your spending patterns and restructuring your debt obligations must take a 360-degree turn.

Here are factors to consider when looking to consolidate debt.

Relevant cash flows

When looking into debt consolidation options, it is vital to take a closer evaluation of your existing cash flows. How can you describe the current movement of your money?

How much money do you expect to receive in a month? Is it certain, or are there other factors that could affect the amount you shall receive?

If you are a business owner, it is vital to maintain a smooth cash flow in order to meet all your financial obligations. Even if you consolidate your loans, regulating the amount of money coming in and going out of your business is the only way to stay on top of your financial obligations.

Thus, debt consolidation works in two ways. It helps you pay off your existing debts and it also helps you maintain a successful cash flow management system. With a sufficient amount of money, you juggle every aspect of your business; manage your accounts receivables and your inventory without having to extend your lines of credit. As a result, consistent cash flow shall increase, the business pattern becomes predictable and it will be easier for you to plan and budget for your future expenses.

Breakeven analysis

How long will it take for you to recover the upfront refinancing costs?

Debt consolidation reduces your monthly payment, making it easier for you to calculate how long it will take you to recover the cost of refinancing. The calculation is simple. Simply divide the refinancing cost with after-tax savings to get the number of months in which you would break even. For example, your refinancing cost is $1000 and your after-tax savings is $50 per month. It would take you 20 months to break even or recover the $1000 you spent on refinancing.

Future benefit of restructuring debt

A debt consolidation loan is used as one of the most effective financial solutions to meet one of the biggest challenges with managing multiple debts. As you make one payment rather than several, you no longer have to struggle with the number of payments that are being deducted from your bank account every single month.

A debt consolidation loan could also work for you if you are getting behind with your debts, thereby reducing the stress of paying off several debts. You no longer have to deal with multiple creditors, or fear telephone calls from debt collectors, reminding you of missed payments or possibly threatening you with court actions.

These brings us to some useful tips for consolidating debt:

  1. Request for a credit report to assess your debt consolidation needs
  2. Create an inventory of your assets to gauge your capacity to repay the loan
  3. Choose a debt consolidation loan based on your needs. Australian Lending Centre offers refinancing solutions specifically designed to meet your debt consolidation needs.

Get more tips in how to consolidate loans from the in-house experts of Australian Lending Centre today!