Tag: consolidate debt

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Short Term Loans

5 Benefits Of Short Term Loans

benefits of short term loans
benefits of short term loans

Taking a loan isn’t proof that you aren’t administrating your finances well or that you aren’t earning enough money to support your family. A loan is a great method that offers you a way out of a problem! In this article, we discuss the benefits of short term loans.

A short-term loan solves the issue immediately and without all the fuss that comes with larger loans. If you need the money to pay for medical expenses, house reparations or an unplanned trip visit to your family, that’s what short term loans are all about!

5 benefits of getting short term loans

They are manageable!

You can take a $500 loan and that’s it! Small loans were made to fix urgent matters, so take advantage of them! Short term loans won’t keep you up at night thinking how you’re going to manage interest rates and any other additional fees.

Unlike large loans that pose problems and can disrupt your finances, a small loan will help you out. Not being able to make payments on time and worrying about a bad credit score won’t be an issue when you deal with such short-term loans.

Online application

This is one of the biggest benefits of short-term loans. You can fill out a form on the Internet and wait for the money. Skip the road to the bank office and staying in line for hours. This type of loan comes with an online application that will only take you a few minutes of your time while doing it in the comfort of your own home.

Access the funding fast

Skipping the fuss that comes with larger loans also means getting the money faster! This is actually the exact purpose of short-term loans. They have been created for urgent matters that can’t be planned ahead. In just a couple of hours, you can receive the money and sort out your financial difficulties! It’s that simple!

You can customise your payment plan

You can borrow only the money you need, considering that a short-term loan doesn’t come with a fixed sum of money. If you think you’ll be able to pay it back in 3 months, settle a 3-month payment plan. If a 5-month plan sounds better, go with that option. A customisable payment plan allows you to get back on your feet without worrying that you won’t be able to repay the sum in the given period. You choose what’s best for you.

Dealing with a short term loan is easier

Taking a loan isn’t always a burden, especially if you borrow a small amount. Repaying a small loan in a couple of months can be entirely possible for your budget. So, you’ll be able to get out of your financial difficulty, and you won’t have any debts.

Short term loans are a great option to quickly get you back on track- that is of course if you don’t have significant debt. Of course with any loan it is important to take precaution. If you have any questions about short terms loans, read 5 questions to ask when applying for short term loans.

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Debt Consolidation

Debt Consolidation Loans: Pros vs Cons

the pros and cons of debt consolidation
the pros and cons of debt consolidation

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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Personal Loans

Criteria for Incurring a Personal loan

debt consolidation

In order to achieve your debt management goal, it is important to consider the basic rules to adhere to when obtaining a personal loan.

Can I Pay for the Personal Loan with Cash?

When you incur a new debt one of the first things you need to keep in mind is the fact that you eventually need to repay it. Consider your income and the amount of money you need to cover your monthly expenses. Check if there is any additional monthly debt. If there is none, it may be useful to look for another loan alternatives-such as a home equity loan, or debt consolidation loan. These options can help you accelerate the reduction of your inefficient debts, reduce your total interest payments and at the same time, give you enough money to boost your income.

For example, home equity loans can increase the equity you have in your home. If you intend to borrow later for investment purposes, you can use the equity to secure your loan. Debt consolidation loans can also reduce the overall debts plus interest and fees. If you roll all your credit card debts, personal loans and other existing debts into one, you will have more control over your financial obligations. You can also save money on the process, and you can enjoy the convenience of paying only one lender each month, instead of multiple lenders at various payment dates.

Should I Recycle my Debt?

Debt recycling is replacing inefficient debt with a debt that can efficiently boost your income and reduce overall debts.  Unlike debt consolidation, it is focused more on wealth accumulation than debt repayment. Take a careful analysis of your financial situation. Do you want to accumulate wealth over the long-term by using surplus cashflow to lower your inefficient debts? If so, it may be time to replace your debts with efficient debt such as an investment loan or business loan.

You can put your money in your investment portfolio and take advantage of its tax-deductible interests. While personal loans are not tax-deductible, the interest expenses on business loans have tax benefits. But, be careful when managing your money. It is true that you can use the money to create wealth by engaging into business, adding capital to an existing endeavour or putting money into investment funds—but you must be prepared for the risks. Eventually, you need to repay the loan and if you fail to do so, you may have to pay higher interests in the process.

Is it economical?

While a personal loan can play an important role in helping you meet your short-term and long-term needs, it must be managed and structured effectively to minimize the overall cost of the loan. For example, you may have to pay a higher interest for a personal loan payable within a year, than one payable within 3 months. Compare interests with other lenders, offering similar loan products and check which one can give you the best rates. Include the overall cost of the loan, not just the APR in calculating its cost.

Ask about the possibility of increasing the size of regular loan repayments on a regular basis.  This will reduce the interest charged and the principal on the loan. But, you may have to pay for the early repayment penalty. so, it is important to inquire about this matter before you sign up for the loan.

Understand the cost of debt

The lowest interest you will pay on a loan is probably 30% considering the time it takes you to pay the loan especially when you have bad credit and unstable cash flow. Even home loans are not cheaper either, more so considering the other charges associated with the loan. Worst, when you default on payment and interests accumulate overtime. It is also clear that the more you miss payments, the longer the time it takes you to repay the loan and the more the interest and other fees you pay.

It is therefore in your best interest to look for a personal loan that offers the lowest possible minimum repayment rate and charges for you. But, if you have a bad credit situation and you cannot submit financial documents like income tax return and payslip that banks and mainstream lenders require, you may have to turn to ‘cheap to service loans’ that are usually the most expensive.

It is important to look for a specialised non-bank lender such as Australian Lending Centre that provides low-cost loans to people who are usually turned down by banks due to poor credit and absence of documentary requirements. Resorting to cheap service loans is not worth it, considering the financial cost of credit you can incur in the long run.

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Short Term Loans

Best Ways to Use Short Term Loans for Consolidation

short term loans for consolidation||short term debt consolidation||debt consolidation

Short term loans are becoming more and more popular nowadays for an obvious reason: no one likes to drag on their payments. They want to get it over with as quickly as possible to be debt-free and considering that the application process is so smooth, this option is fairly convenient. You can also use short term loans for debt consolidation. Find out how here.

Moreover, these loans are great for those with bad credit, since they don’t need pristine credit rating to offer you a loan. The downfall, however, is that these loans have higher interest rates than the average loan. Everything “emergency-labelled” possesses some sort of risk, so in order to gain some security, lenders will raise the stakes to keep you paying.

But how can you use short term loans without burying yourself even deeper into a hole of debt? The answer is: use them wisely. You may contact our specialists on 1300 138 188 for a free consultation, if you wish. No matter if you are looking for a loan or some advice, we will do our best to guide you on the right path – and also help you avoid more payments than you can handle.

What Is Debt Consolidation?

Debt consolidation is the process of combining two or more loans into a single payment. If you’re asking yourself what difference would it make, think about it this way: with each loan, you have a particular interest rate to pay. As a result, the total payment in interest will skyrocket into space.

Granted, interest rates in debt consolidation may rise depending on the total sum; but if you can get at least 1% off the total interest, this will help you in the long run to save money – money that you can use on the payments for the actual loan.

helpful

How a Short Term Loan Will Help

Short term loans are there to help people in an emergency. As we may have mentioned, though, these types of loans are unsecured, and therefore, quite expensive. Since the lenders will be put at risk when they offer you money, they will have to turn to a high-interest rate to make sure that they are getting their money back.

Here’s a short list of the pros offered by short term loans:

  • One single payment: Nothing is more confusing than having to pay multiple loans to a lot of lenders. The risk of forgetting to pay one loan is very high, and before you know it, you’ll be staring at your credit history wondering why it looks so horrible.
  • Possible lower interest rate: There’s no absolute certainty that short term loans used for debt consolidation will offer lower interest rates, but let’s say that it’s a high 95% possibility. Used correctly, such a loan will have you paying less for each month.
  • Avoid credit score damage: By using short term loans to pay off your debt, you’ll be less likely to fall behind on your payments, and you will actually be able to stay on track. Over time, this will work to “heal” your credit score, and you’ll be able to gain credibility if you want to go for a regular loan in the future.

You may also want to keep in mind that a short term loan will be helpful only if you take out one of them. The more loans you take out, the more you will have to pay in interest. The solution would be to find some short term loan that will cover your entire debt, without having to resort to other financing sources.

Here’s how the whole process works: you get a short term loan, and the money that you will get will be used to pay off your other debts early. Not only will it help make things easier for you, but if you already had issues with late payments on the previous loans, this option will help fix your history.

avoid-traps

Avoid Getting into a Trap

The secret to avoid getting yourself trapped into a debt cycle is by borrowing exactly the amount that you need, and no more than that. Many people make the mistake of borrowing more than they need, just in case they need it. However, that “just in case” will have you paying more than you were supposed to in interest, which beats the purpose of consolidating. Basically, you are borrowing so that you can make things easier, not over-complicate them.

It’s important that you borrow responsibly so that you do not have any issues paying it back. Borrow from just one lending company to avoid the clutter of interest fees, and before you know it, your payment will be made without any further issues.

In conclusion, short term loans can help you if you want to consolidate your debts into one payment. The only requirement is that you need to be smart about it and not stretch more than your rope can handle. Enquire today and get short term loans for consolidation with Australian Lending Centre.

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Debt Consolidation

Questions You’ve Had about Consolidating Debt But Haven’t Asked

Debt Consolidation Loans

Debt consolidation is regarded with kind eyes by many Aussies and often described as a solution to all of your problems. Just like the name says, debt consolidation refers to putting all of your debts together, in order to keep track of your payments easier. But perhaps you have questions about consolidating debt. Maybe you are unsure how it works and confused about how you can save money by choosing this finance option.

In this article, we reveal all!

Is Debt Consolidation the Right Choice for You?

If you’re making multiple payments per month, then you know by now that each comes with different interest rates and fees. In this case, yes, debt consolidation is the right call. Also, by consolidating your loans, you will always have to make one monthly payment, instead of sending money to a number of lenders.

Here are the top 6 questions about consolidating debt:

  1. Can I combine my home loan with my personal loan?

Consolidation allows you to combine all of your loans into a single one, regardless of their type. Keeping track of your home loan, car loan, personal loan and so on can be tiring. This is a time-saving solution.

  1. How will consolidation benefit my expenses?

Some loans have bigger interest rates than others. By combining them, you will have a fixed rate that you’ll pay monthly. This way, you’ll know exactly the amount you’ll have to repay, without also having to deal with various taxes and fees that accompany each loan.

  1. Am I eligible for consolidation?

Everybody can choose to consolidate their debt. Still, check with your lender and see if your home loan allows you this option. If not, try to change the features or simply look into a refinancing that incorporates debt consolidation.

  1. Is it better to pay my car loan in 30 years?

When you combine all your loans, you can choose to prolong the payments, in order to fit your home loan. Unfortunately, even though your rates will be lowered considerably, the interest fees will expand due to dividing the car loan for example, over a period of 30 years. You can adjust the debt consolidation to fit your needs.

  1. Should I consolidate if I have bad credit?

This is actually the main reason why people consolidate their debts. Debt consolidation tells lenders that you have placed your affairs in order and are serious about improving your financial situation. Also, it will enhance your credit score.

  1. How can the equity in my home help?

Through debt consolidation, the equity in your home can reduce significantly the interest rates you’re paying each month. Being a secured line of credit, a home equity loan will use the equity in your home as collateral, which can lead to a fixed and smaller interest rate.

If you’re having financial problems and can’t afford to pay back all your loans, expanding the loans over a longer period of time will help you get back on your feet by paying less each month. So, talk to your lender about this option.

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Debt Consolidation

Are You Falling for these Debt Consolidation Traps?

debt consolidation loan

Do you feel burdened by several credit card debts and other outstanding loans and you think debt consolidation could provide some serious relief? Debt consolidation is a new loan that allows you to pay off your multiple balances in one monthly payment. It doesn’t erase all your debts but simply makes it easier for you to repay. So, if you want to have a clean slate for keeps, make sure that you don’t fall into these debt consolidation traps:

Ignoring the cause of your debt problems.

Debt consolidation helps people manage the repercussions of bad debts. But it is just a temporary solution to your problem. Addressing the root cause of your debts, such as your lifestyle, money-management issues and other related things can help you analyze why you sunk in debt and how you can get out of it.

It is important to ask yourself, “What got me into a pile of debt?” Remember that it takes a while before debts become unmanageable. It is almost impossible to come up with a quick solution to internal debt issues when you fail to see where and how it started.

Debts did not grow overnight so unless you come up with a concrete idea with what got you into a financial mess, the same situation is likely to repeat itself.

Australian Lending Centre has in-house professionals to help you in retracing your financial actions. We can help you with our debt management plan and debt consolidation loans to deal with your present debts as we help you identify your spending habits.

Perhaps you were taking high-interest loans without knowing it or you are not paying your loans right. In other cases, the problem could be as simple as forgetting the due dates or the existence of debts itself.

Not making a proactive effort in searching for the best consolidation loan.

Here are some factors that you need to consider when choosing a loan consolidation program:

    • all of your outstanding debts
    • interest rates
    • lenders’ willingness to negotiate a lower rate
    • consolidation options

Consolidating debts has its own implications. Some lenders offer rates and fees that creep up over time. Others will charge you hefty fees that may put your assets in line in exchange of deceiving interest rates.

Australian Lending Centre gives you different options to pay for your debts. If you want to pay a lump sum to settle all your debts for less than what you actually owe, we can help you do that. You can also talk to us about our debt management program and see whether or not it can work for you. A debt management plan usually involves making an agreement with your creditors to consolidate the full amount of your loans. The negotiation is successful if you get lower interest rates or longer repayment period.

Thinking that you are finally out of debt.

Debt consolidation is still a loan. While you no longer have to deal with angry collection calls and you are not pestered with high-interest credit card bills, you cannot go back to your old habits. One of the big debt consolidation traps is forgetting he your debt problems were caused in the first place. Avoid falling back to maxing out your credit cards once again. Don’t give in to the temptation of charging all of your credit cards with zero balances once again, especially if there is no urgent need to do so.

Bear in mind that you still have a substantial amount of outstanding debt. So, if you cannot close most of your credit cards leave them at home and put only your low-charging credit cards in your wallet for emergencies.

Call us today!

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Debt Consolidation

What is the Best Way to Consolidate Debt?

debt consolidation

The best way to consolidate debt depends on your needs and financial situation. Here are ways to consolidate your debt to ease your financial burden and build your credit score.

Types of debt consolidation

There are two ways to consolidate debt; through a debt consolidation loan or debt settlement consolidation.

Debt Consolidation

The first type is a type of loan that pays all of your outstanding debts in full so your credit report would show a zero balance on those debts. Instead of multiple loans, you only have one loan. Consolidated loans typically reduce the interest rates and monthly payments but it has longer repayment period.

In debt consolidation, a single large loan is used to pay off several smaller loans. You no longer have to worry if you missed payments on several smaller debts because you only need to make a single regular payment for the new consolidated loan.

While debt consolidation can be a lifesaver, it can also result in bad debt if you don’t know how to manage it. That’s why it is important to look into the interest rate which must be lower than the previous smaller ones, to save money on your monthly payments.

Debt Settlement

Consolidation through a debt settlement means that you engage the services of a debt settlement firm that negotiates settlement with each of your creditor. While they are not offering consolidation loans, they can help you negotiate debts and settlement. Your debt will be settled when the creditor agrees to accept an amount which is lower than what you actually owed.
You may have to draw a check and pay it to the debt settlement firm that then distributes the payment amount to your creditors. You still have multiple loans. But, with proper distribution of payments, you no longer have to worry about creditors running after you.

When is debt consolidation appropriate?

Debt consolidation is for people who want to consolidate multiple accounts into one. They must be willing to pay lower total monthly payments, but a higher total amount of interest and at a longer time to repay all of the debt.  They must also consider closing paid off accounts to avoid the temptation of taking on even more debt and be caught up in the cycle of incurring new charges and getting debt help.

Debt consolidation is not for everyone. It is important to talk to our consultants to know about different options to manage your debts. Remember that debt consolidation is most effective when you are enrolled in our debt management program that will equip you with financial knowledge to avoid future debts. We shall help you create a better financial management strategy that will not only help you get out of debt but enable you to be financially independent.

Australian Lending Centre offers debt consolidation to manage your multiple loans in one easy repayment, with lower interests and it is available to everyone, whether you have good or bad credit. You can take control of your finances by consolidating high-interest loans such as credit cards, medical loans, store cards, cash advances, secured and unsecured debts and other loans.

Contact us today to discover the best way to consolidate debt and for a no-obligation consultation on your eligibility for debt consolidation and other loan options.

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Debt Consolidation

Top Questions to Ask Yourself before Consolidating Your Debt

debt consolidation loan

Debt consolidation is the process that gathers the total amount of your outstanding debts into one single loan. As with any other financial procedures, it may or may not work for you. The key is to know what to look at to ensure that you’ve made the right choice for your personal background. Here are some top questions you should ask before consolidating debt.

  • Can you afford to pay the debt?

First and foremost, you need to evaluate the immediate effects linked to debt consolidation. What impact will it have on your financial situation? Will it help you to manage your finances better or make you lose absolute control of them?

  • What is the primary purpose of the loan?

The first thing you should do is to distinguish between what you want and what you need. Only because you want something really badly, this doesn’t mean you should immediately borrow money for that, unless it is actually relevant. Also, be mindful especially if your loan involves a third party such as a family member or friend in the position of a guarantor.

For this kind of loans, you are held responsible in case of non-payment or defaults. What is more, if you’re considering taking a loan in order to pay your utility bills, you should discuss the matter with your financial provider. He/she will give you an expert insight into the issue.

  • Can you manage to make the repayments?

This is one of the most important questions to ask when looking at consolidating debt. You should make sure that taking up a loan is the right choice for you. Also, see if you can manage to make the repayments in your current financial scenario. If you anticipate that you can work on diminishing your monthly expenditure, we recommend you to do that before actually seeking to take another loan.

It’s also highly recommended to factor in possible interest rate increases, and unprecedented changes in your circumstances and budget.

  • How does your credit report look?

Note that credit providers will always evaluate your credit file in order to appraise your capacity of repaying the sum within a given timeframe. Considering that you can obtain a copy of your credit report free of charge, you should do that in advance, to ensure that there aren’t any mistakes.

It may seem like common sense, but you should bear in mind that debt consolidation is still debt, and you should treat it as such. It is a decision that can be really helpful to numerous individuals, but it requires a lot of thought. So, the verdict is entirely up to you, your budget and personal specifications. Make sure you establish a financial goal and craft a realistic schedule for paying off your debt. Sometimes, we ought to embrace a range of changes to diminish debt, and this applies in all cases.

Bear in mind that each situation is distinct, and you can always discuss with a financial consultant before making a call. After weighing the pros and cons related to debt consolidation, you’ll be sure that you’ve made the right decision.

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Debt Consolidation

Why Should You Choose Debt Consolidation?

debt consolidation loan

If you are like one of many Australians with numerous debts, you’ve probably realised that there are lots of options out there. One of these options is Debt Consolidation. This finance type comes with a number of benefits when you’re facing mounting debts from multiple creditors. But why choose debt consolidation? Here are the top reasons for consolidating your debt:

You will only have one repayment

When you’re juggling many different repayments – sometimes on a weekly, fortnightly and monthly basis – it’s easy to lose track of how much is left owing, how much the interest is on each and every balance. Debt consolidation is the process of taking out a loan to cover your debt, and then you repay that one loan. Your single repayment will be bigger, sure, but only having one payment to make is part of the appeal and definitely one benefit of debt consolidation. It also makes it easier for you to budget the rest of your expenses, knowing the exact amount that is needed for your debt which will be the same each month.

Debt consolidation loans have lower long-term interest

A big reason why you should choose debt consolidation as your way out of debt is for the money saving that you can experience! Credit cards and car loans are the kind of debt that accrue interest at a ridiculously high rate. With a debt consolidation loan, it is considerably lower, meaning you’ll save more money on your repayment each month as well as over the course of the entire loan.

Improve your poor credit rating

If you’ve been consistently late in making repayments on your debt accounts, your credit score has likely suffered. Unfortunately, a low credit rating makes you ineligible for financing a big purchase – such as a home loan. However! If you have all your debts in the one loan and you’re always on time in paying, your credit will start to rebuild. Having a decent credit rating also means that your bank or provider will lower your interest, potentially saving you quite a bit over the term of your mortgage. Improving your credit and making sure you’ll be approved for a home loan are two more benefits of debt consolidation.

You will stress less

Do you receive multiple calls and letters per week from debt collectors? With one single loan, that will lift a significant weight off your shoulders. There will be no reason for creditors to be hassling you all the time, as your repayments to them will be taken care of. That means you can relax; the sinking feeling you get when your phone rings will be gone.

Now that you’ve read about the ways debt consolidation can help you, you should be in a better position to judge whether it’s the best way forward for you in terms of getting past your debt and repairing your credit rating, as well as easing the emotional burden that accompanies a mountain of debt.

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Debt Consolidation

Consolidating debt can help you save big

consolidation loans

If credit card bills are stacking up and the interest rates are making it impossible to ever think of being clear of debt then it is time to act. Interest rates on credit cards have been stable at a high rate, making a relatively small credit card balance to quickly escalate out of control. If you have a few credit cards and they all have balances due, then it would probably be best to roll them all together and consolidate the debt at a lower rate so that it becomes more manageable. There are a few ways to get all of the debt under one loan so that the payments can be made on the entire debt in one monthly payment but you can also get the added benefit of having lower cost so that you are able to get the whole thing paid off.

Consolidating debt in different ways

Personal loans

Gathering all of the debt into a personal loan is a good option. The interest rate will be lower than the credit card companies’ interest rates so the balance will not continue to grow at such a fast pace. The personal loan route will break the entire loan up into a set repayment term so that at the end of the loan period the entire loan will be paid off so you can start over with a clean slate.

Mortgage refinance

If you have a mortgage already and have equity in your home, a great way of consolidating debt is to combine your credit card debts into your mortgage. All your credit card debts will be consolidated into a lower rate. Since mortgage rates are usually lower than credit card interest rates, you can have all of the debt repaid as you pay off your mortgage.

Credit card consolidation

Taking all of the different credit cards and placing their balances into one credit card with a no interest period is also a great way to stop the growing interest for a certain period for you to get ahold of the debts before it gets farther out of hand. The aim with this route is to have the entire balance paid off before the interest free period is over.

Consolidating debt from many different accounts is the best way to stop or slow the interest rates from compounding the debts until it is too large to handle. There are several ways of handling debt from getting out of hand and it pays to look into the different options in consolidating debt and choosing what works for you.

So speak to a financial specialist about debt consolidation so you can save big while you pay off your debts.

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Debt Consolidation

Consolidate Debts Now

how to become debt free

It’s the perfect time right now to make your way out of debt and to follow through on that popular New Year’s resolution – ‘to get ahead financially!’ However, in spite of the Reserve Bank’s respite on raising interest rates in January, and the sharp fall in the number of Australians taking out home loans, economists predict Australians can still expect at least two more rate rises during 2010.

Debt consolidation is the process of tackling multiple debts by merging all existing debts into a single loan with a lower interest rate. As you only pay one monthly instalment rather than several, the interest rate will be lower as it’s charged on a single debt instead of many; thereby reducing immediate monthly repayments.

Continue reading “Consolidate Debts Now”
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Refinance and Refinancing

Now is the Time to Refinance

refinance interest rates

After the RBA’s decision this week not to increase interest rates at present – home owners should consider refinancing right now.

Refinancing your home loan can allow you to access cheaper interest rates or even unlock the equity in your home to renovate, buy an investment property or consolidate debt.

Some of the advantages of refinancing a loan include:

  • Lower monthly repayments when you refinance
  • The ability to pay off multiple debts through refinancing schemes
  • Reduced risk by changing from a variable rate to a fixed rate when you refinance
  • Access to cash to cover major expenses when you refinance
Continue reading “Now is the Time to Refinance”
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Debt Management Financial Fitness Financial Planning

Cut Costs and Grow Your Savings

how to grow your savings

The world might be slowly coming out of a recession, however, many people are still struggling to make ends meet. This could be largely due to a lot of people being made redundant, and still looking for work or only working part-time due to fewer job opportunities.

If you fall into this or a similar category, and you find that you are struggling to make your repayments, read on for some helpful hints on cutting household costs.

Cut Costs – Build Savings

Phone Bills

An increasingly popular way to make phone calls nowadays is by using VoIP (Voice over Internet Protocol). It’s a way of making and receiving calls over the Internet and it can work out to be much cheaper than using a traditional Telco for your phone. For more information, take a look at Skype.

Bank fees

Making a phone call to your bank every six months to see if they can do anything to help you cut your bank fees is very worthwhile. Use the call as an opportunity to check that your money is in an account that generates the highest interest possible. Also check to see if your bank has a fee-free option.

Energy

We have heard its good for the environment, but don’t forget that by turning off electrical goods at the power point, or even your gas system when going on holidays, are good ways to cut down on utility bills. Also, look into what time is best to do a load of washing, or turn on the dishwasher, as it is on-peak and off-peak times throughout the day – this means the electricity to run your electric goods are charged at different rates depending on what time of day it is.

Food

Spend more time eating at home, rather than going out for meals, and take your lunch to work instead of purchasing food and coffee on a regular basis.

Debt Consolidation

Debt consolidation or ‘consolidation loans’ are perfect for those who need credit card consolidation, personal loan consolidation and even home loan consolidation, and they can drastically reduce the amount of interest you pay to service your debt.

Australian Lending Centre can offer you a range of debt consolidation options so that you can combine all your monthly outgoings into one lower affordable monthly payment.

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Credit Card Consolidation

Consolidate Your Credit Card Debt

Debt Consolidation

Consolidate your credit card debt could be one of the smartest decisions you will ever make.

Get on top of credit card debt

Credit card consolidation is a good way to get on top of your debts and ensure a better credit situation for the future. Consolidation is becoming increasingly popular since the Australian Government introduced Part IX Debt Agreements to assist those that are currently in financial difficulty.

Use credit cards wisely

Credit cards, if used properly, can be great to have. However, if you are an emotional spender, not financially disciplined or not careful with your spending it is very easy to rack up debt before you realise you have a problem. It can sometimes take you months and possibly even years to get out of debt.

Understanding the true extent of your debt

If you feel that it is time to get your debts under control and do something about them, there are professionals who will assist you with the task of consolidating your credit card debt. The first thing to do is to look at your debt, and see exactly how much you owe. If you know what you owe and who all you owe it to, it will be much easier to get help.

Don’t leap into a Part IX Debt Agreement without exploring all other options

Before you consider entering into a debt agreement it is often useful to look at the credit card market and see if you can consolidate your current credit card debt onto a credit card with a low or even 0% interest rate.

Beware of additional fees

It is important to be aware of additional fees you may incur when taking out a new credit card. However, if you are in a situation where you can not manage your debt, another credit card may not be the best solution. In this case, you could consider a debt agreement. This is a legally binding agreement between you and your creditors where you arrange to pay off as much as you can afford each month.

If you are in a position where you are trying to pay off a few credit cards, consolidation will put everything into one bill, therefore, making it easier for you to pay. Paying just one bill can help you save a lot of time, as well as preventing stress.

Only consolidate debts if you can reduce the overall amount of debt

Consolidating your credit card payments into one bill can make your finances more manageable; however, you should never do it for that reason alone. If doing this will result in you paying back more, then it is not a good idea. You need to consolidate your debts in such a way that you will reduce your overall monthly repayments.

If you would like professional assistance consolidating your debts feel free to contact the Australian Lending Centre on 1300 138 188.

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