One credit card can be a handful let alone multiple credit cards. When you have a few different cards, with different rates and limits, it can be a bit tricky to manage all of them effectively.
At ALC we help our customers by having just one repayment for all of your debts. This makes it much more manageable, saves you time and you don’t have to stress about which card is overdue and for how much. Let us help you with a credit card consolidation loan by calling 1300 138 188 or Apply Now!
Tips on Credit Card Debt Consolidation
Set yourself up for a debt-less lifestyle! We have been helping Australians through the consolidation process for over a decade, we know what it takes to get you the best deal and we strive to get you debt relief fast!
Consolidate Credit Card Debt with Home Equity
One of the most cost-effective techniques to consolidate credit card debt is to use the equity in your home – by refinancing your mortgage and taking advantage of lower interest rates, credit card consolidation can be achieved quickly. This not only makes repayments both easier and more manageable but allows you to substantially reduce the amount of interest you pay overall.
Credit Card Consolidation Loans
Credit card consolidation loans are perfect for those who need to consolidate multiple credit cards, store card debt and personal loans, as they can drastically reduce the amount of interest you pay to service each debt.
Here’s an example of the money you can save with a credit card debt consolidation loan:
Take for example a credit card debt of $5,000. If you pay the minimum repayment of 2%, it could take you up to 36 years to pay it off and you could pay over $15,000 in interest. With a credit card consolidation loan from the Australian Lending Centre, you could pay this $5,000 back in a little over 2 years for around $60 per week, with interest charges in the low hundreds instead of thousands of dollars.
Pay Debt in Order of Priority
This is a popular strategy, helping people get out of debt faster. If you have multiple credit cards or personal loans to pay, the idea is to pay more towards the debt that charges the highest interest rate, followed by the second highest and so on. By doing this, you can minimise the total amount of interest paid in servicing the debt.
Credit Card Consolidation with a Balance Transfer
Another way to achieve credit card consolidation is to take advantage of credit card balance transfer offers by rolling multiple cards onto one. There are several credit card consolidation offers at present, offering a 0% interest rate on the balance transferred for up to 6 months, followed by a lower-than-usual interest rate of around 12.5% thereafter. It’s important to take advantage of the low interest period on all credit card consolidation offers, as some will return to an interest rate similar to that which you were trying to avoid by consolidating credit cards in the first place.
Cut Up Your Credit Cards
Another popular debt reduction technique is removing the temptation all together – cut up your credit cards before the debt accumulates. For those who have become reliant on credit card debt, budgeting can be a frightening concept. But if you can change the way you think and budget, you can set a course to get out of debt without using a credit card consolidation strategy.
Get started, consolidate credit card debt today by calling our friendly team at 1300 138 188 or Apply Now!