Tag: consolidate debts

Categories
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.

Categories
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.

Categories
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.

Categories
Debt Consolidation

Debt Consolidation Explained: What Makes It the Right Choice for You

debt consolidation

Struggling with many loans and different interest rates involves lots of time and money. So, we are here to offer you the answer to this question: why is debt consolidation a good choice for you?

Consolidation means that all your loans combined in a single one. You’ll be able to manage all your finances easier and without worrying about multiple debts. Also, without the extra fees, you’ll be able to pay back the loan faster.

A single payment per month will ensure bigger savings, controllable interest rates, as well as smaller and fewer fees.

So, here are the answers to:

Why is debt consolidation a good choice?

It can combine different types of debts

Multiple personal loans can be administrated in the form of a single debt consolidation loan. Instead of having to pay interests on two or three personal loans, you can choose to pay only one.

Combining debt and your credit card into one manageable payment is possible through this finance type. Also, this is a viable option even if you’re not eligible for a balance transfer, so this is why consolidating debt is a good choice.

Your credit provider may even let you consolidate private loans, phone debts, electricity debts or other types of debts or loans.

It comes with three options that will help you out

  1. Sorts your credit card debts when you don’t qualify for a balance transfer. A debt consolidation loan is the next best option when you aren’t allowed to transfer your balances to a credit card that has smaller interest rates. In addition, you’ll have an extended period to pay back your loans and it will come with fixed rates per month.
  1. You’ll be able to payout personal loans or refinance them. A good credit score can allow you to take on a personal loan and you’ll also get fixed interest rates.
  1. Turn the equity in your house into collateral. With a secured line of credit, you can choose to get rid of the debt by obtaining a home equity consolidation. So, if you’re still wondering: “why is debt consolidation a good choice?”, you have your answer. Still, keep in mind that the fees can be higher even though the interest rates are lower.

Why is debt consolidation a good choice for your loans?

Usually, people take this option as an alternative to keeping up many payments and because it’s a cheaper alternative. If you want to minimise fees and interest rates, a debt consolidation loan is definitely the right call for you.

Debt consolidation is a right solution if you’re dealing with massive debts or different credit loans that you want to solve at once and without additional problems.

The interest rates are much lower if you are willing to use the equity in your home. Compared to a credit card loan or a personal loan, a debt consolidation loan will bring fewer expenses and save you money that you’d have to pay as interest.

Categories
Debt Consolidation Home Loans

Consolidate Debts Into A Home Loan

debt consolidation

Australia’s interest rates have decreased drastically and now is the best time in years to consolidate debts into a home loan! Given the interest rate atmosphere and the ease of combining of debt into a new home loan, now is the best time to get all your debts rolled into one and simplify your banking as well as take advantage and save with lower interest rates.

Consolidate your debts for a new home

Big banks are not the only option either for someone wanting to grab ahold of the deals to be had in the market right now. Buying a new home is every growing family’s dream and there is no reason why mounting credit card bills or medical bills necessarily have to get in the way of that dream. Having multiple bills coming in from many lenders or debt collection agencies can be tough to manage when the paycheck comes in at the end of the month. Getting all of the debt put under one loan means that there is only one payment to make and it can be managed much easier.

Now non-bank lenders have the ability to offer consumers better deals than big institutional banks usually offer with overhead expenses. If a big bank has not been able to meet your lending needs then it is time to reach out to a non-bank lender to get your debt settled into one weekly, fortnightly or monthly payment.

Consolidate with non bank lenders

Do not let a big bank’s strict rules and regulations get in the way of you and your family’s goals of moving into your dream home and get all of your monthly bills in order. It is possible to consolidate your debts and also take a loan for a new home and get all of this at the rock bottom rates and cost now available to new home buyers. Best of all, the big banks are not your only choice and there are non-bank lenders that will try harder to get your business and will make you a better deal on consolidating your debts into a new home loan. These interest rates will not stay this low forever and now is the time to strike and get your financial future in order under one roof.

To take advantage of these rates, contact your trusted loan expert and find out how you can consolidate your debts into a home loan. The friendly team at Australian Lending Centre is happy to help with any enquiries.

Categories
Debt Consolidation

Methods To Pay off Multiple Debts: Debt Consolidation vs the Snowball Method

debt consolidation

If we had three wishes, one of them would be to live without any debt. We’d all love to win the Lottery or to possibly inherit a huge sum of money from some distant relative that we’ve never even heard of. But while reality is far from this, there are still more options to pay off multiple debts than you might think. In this article we discuss Debt Consolidation vs the Snowball method.

But real life doesn’t have quick-fixes. As much as we want to be rescued from debts, we all need to dig ourselves out of these financial sinkholes. Aside from coming up with the money to repay the debts, you need to find the most effective method that works best for you. Two of the most effective methods are Debt Consolidation and the Snowball Method.

The Snowball Method

This Snowball Method involves taking care of the smallest debts first and then moving onto larger ones. This method gives people a sense of positive progressive momentum when dealing with multiple debts. It also encourages you to keep paying off the debts one after another, starting from the smallest ones to the biggest ones. The downfall of this method is that it can take longer to pay off all the debts and the longer you wait to pay off the bigger debts, the larger the amount of interest will be.

Debt Consolidation

With this method, you don’t need to worry about missing any of your payments. It works best when you have multiple creditors on different dates and different amounts. When you consolidate your debts, they are all rolled into one debt and it makes it easier for you to pay off. Additionally, debt consolidation can reduce the total amount of interest that you would be paying on all the debts.

Hence the latter method is more favourable than the Snowball Method because it’s easier to maintain and keep track of. You only need to make a minimum repayment every month and it allows for you to pay off the principal. You can also get rid of your credit card debts with this method whereas with the Snowball Method, the credit card facilities will still be open since it’s one of the biggest debts and the interest will just accumulate and make the debt bigger.

So when it comes to getting rid of multiple debts, debt consolidation to one easy repayment is more ideal in tackling them all at the same time with a lower interest rate. If you need a more substantial plan to get started on your getting rid of your debts, it will be best to seek financial advice from experts who specialise in debt consolidation to make sure that you’re on the right path. Contact Australian Lending Centre for a free consultation about consolidating your debts or you can enquire online today to find out more.