Tag: consolidation

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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 Financial Fitness Financial Planning

Debt Consolidation vs Creating Your Own Repayment Plan

consolidation loans||debt consolidation||debt consolidation loan

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 factors should you consider when making a decision? Read on to find out.

Debt consolidation

If you have multiple credit card balances or debts, you should 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 when 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 for repayment plans. It’s hard to pressure yourself because you may change the rules when they become difficult to follow.
  3. If your debt is too high and your income is low, you may get 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 three years ago? Maybe it was a new house or car, a sales goal, or a vacation. List at least five 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, consolidation and a 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 to adjust them when they’re getting harder to follow?

Ask Yourself

How much money do you have right now? Can you afford to buy what you need and repay your monthly debt? If you’re hard on cash, then it is advisable to get debt consolidation. You will be able to save money on interest, and you have a good chance of reducing your monthly repayments.\

The same thing goes for those who have enough funds but 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.

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
Financial Planning

5 Rules to Avoid a Bad Credit Score

debt consolidation||consolidation loans

These days, no one could be immune to possible bad credit. Many people are incurring either a job loss or a reduced income. Some just could not control their personal finances effectively. A bad credit score has become very common especially now that many consumers find difficulty in meeting financial obligations.
No one wants to incur bad credit. That is for sure. Getting a poor credit rating is like a curse. It could mean many other problems and difficulties. Bad credit could be a passport to higher interest rates and discrimination from banks and other financial institutions. Fortunately, incurring bad credit could be avoided. Here are five rules you could observe to do so.

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Categories
Refinance and Refinancing

Home Owners Struggle – Time to Refinance

home owner refinancing

Australian home owners are predicted to spend the remainder of 2010 forking out 50% of their income on debt repayments.

A recent study shows that more than 40% of Aussies spend about half of their monthly income on repaying home loans, credit cards and/or personal loans.  This survey also indicates that many Australians have little cash left over to play with at the end of the month – which only goes to show that every time the Reserve Bank of Australian (RBA) and major banks increase interest rates, a majority of home owners struggle further.

Continue reading “Home Owners Struggle – Time to Refinance”