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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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News Debt Consolidation Debt Management Financial Fitness Financial Planning

Fast Loans and the Fastest Ways to Repay Them

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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.

Warning About Borrowing

Contact Australian Lending Centre to get back on track. 

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Debt Consolidation

Tips on How to Qualify for a Debt Consolidation Loan

Qualifying 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 Debt Management

Is Debt Consolidation better than Bankruptcy?

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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

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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 Do if Your Debt Consolidation Application Is Declined

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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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Variable-Based Tips On How To Manage Your Debt

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If you’re planning to get a new loan, but you’re not sure if you can repay it on time, here are tips on how to effectively manage your debt, based on 2 financial variables.

Financial success does not depend on the amount of money you have but on specific strategies that apply to your situation. Whether you will use the funds for personal or business purposes-increasing your cash flow is still vital to a successful debt management plan. Debts may increase or decreases depending on your strategy, in the same way as your spending habits influence your cash flow.

You cannot just say that you are going to pay back your debts without some detailed strategy.

The first thing that you can do to manage your debt is to improve the variables that eventually determine your financial capacity to repay. Improving these 3 variables about your debts you will increase cash flow and pay off your debts and improve your finances.

Earnings

How much is your after-tax net income? What about your after-debt repayment income? When computing your free-money, look into your debt to income ratio first.

Your debt income ratio refers to a certain percentage of your monthly gross income that you use to pay debts. It has two classifications: The front-end ratio, or the percentage of income you use to pay for your mortgage, rent, property taxes and other similar housing costs. Second, the back-end ratio, which is the percentage of your income that you pay for all your personal loan and credit card payments and other recurring debt payments, including those covered by the front-end ratio. As long as it is recurring debt, it is still covered by the back-end ratio.

To calculate your debt-to-income ratio, add up all your monthly debt payments. Divide that number by your current monthly income. Get the percentage by multiplying the result by 100. Let’s say if you spend $1000 each month on debt and have a monthly income of $4,000, your debt to income ratio would be 25%.

Increasing your income and at the same time paying your debts can help you lower your debt to income ratio, giving you higher free cash for your other needs. You can also increase your debt payment to quickly pay off your debts until you achieve a zero-debt ratio.

Financial satisfaction

Are you satisfied with your present financial situation? Or, do you find it difficult to meet your monthly payments on your bills?

How much money is enough and well-enough for you? What might be enough to pay all your debts may not be well enough to sustain your lifestyle, pay for your emergency and daily needs and invest for the future. Or, it could be sufficient for you as long as you plan your budget wisely.  Decide how much might be enough for you and your family if you have one to know what number you should definitely try to reach.

Discover more tips on how to manage your debt by talking to our in-house loan experts at Australian Lending Centre today!

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Debt Management

The Wrong Ways to Pay Off Your Debt

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Being in debt can be stressful, no one denies that. And the pressure can place you in a range of challenging positions, forcing you to cave in and make the wrong financial decisions. Embracing the right ways to pay off your debt is more than mandatory.

But how do you know which are those? Well, you must get acquainted with the practices that should be avoided, and this is what we’re going to discuss in today’s article. Keep on reading to discover the wrong ways to pay off your debt.

Consolidate with a high-interest loan

Debt consolidation makes sense when the financing solution provided by the lender is actually favourable. If the loan terms are convenient for your financial situation, you should go for it. Nonetheless, choosing debt consolidation for the wrong reason and failing to analyse the implications of the term will do you more harm than good.

In the case in which the only loan you can obtain has an interest rate that is higher than your credit card debt, you should leave it aside.

At first, you may believe that your monthly repayments appear lower with debt settlement. Nonetheless, that is only because the loan has an extended timeframe. If you were to calculate the interest you’d end up paying during the life span of the loan, you might come to realise that such a solution is not the best. So, this is definitely one of the wrong ways to pay off your debt.

Misusing your home equity loan

The second on our list of one of the worst ways to pay off your debt: choosing a home equity loan. Even though you may assume that this could be the answer to all your problems, this is not always the case. Of course, there are many situations in which this option actually works. As always, everything depends on each person’s financial conditions.

However, if you’re struggling with high-interest credit card debt, you should pinpoint the root of the problem. For example, your debt situation might be a result of reckless spending and poor money management skills. If you don’t aim at solving the problem from its root, you are prone to end up in this exact scenario in a year or two. So, it goes without saying that a home equity loan won’t work as long as you don’t fix the underlying issue. In the case in which the loan ends up being unaffordable, you might lose your home as well.

Choosing the support of a debt settlement company

Accepting the guidance of a debt settlement company is, without a doubt, one of the most unfavourable ways to pay off your debt. As it is expected, these kinds of businesses advertise as being the solution to everybody’s money related problems. Nonetheless, after you manage to settle your debts, by paying significantly less than you owed, your credit rating is terrible, and you’re back where you started. Not to mention that we’re talking about a lengthy process. Even if your attempt is successful, you’ll have to work on rebuilding your credit score for years.

So, try to stay away from the methods mentioned above. There are other ways to pay off your debt without affecting your credit score in the process. Speak with a financial expert like Australian Lending Centre who offers free consultations on paying off debts and managing people’s finances.Save

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Debt Consolidation

When Is a Debt Consolidation Loan Feasible?

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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 Management

Tips for Erasing Debt

Tips for Erasing Debt
Tips for Erasing Debt

Feeling discouraged and overwhelmed by debt is a feeling that many Australians experience. And things don’t get by any chance easier when you want to make ends meet, and your income is limited. Unfortunately, there’s always the temptation of agreeing to high-interest loans, assuming that it’s a temporary solution. But, in the long term, making rushed financial decisions will jeopardise your chances of accumulating savings. So, if your question is how to erase debt, keep on reading.

Prioritise your payment plan

Considering that you have limited income, you should start by prioritising your expenses. Bear in mind that necessities such as utilities, unpaid federal taxes, student loans and others should be in your focus. As for credit card debt, this is a common concern for many Aussies as well.

First of all, target the card that has the highest interest, and focus on that if your debt enables you. But, most importantly, you should start budgeting and distinguishing between urgent debt and the debt that can wait.

Consider Debt Negotiation

Our next tip on how to erase debt is to embrace debt negotiation. Of course, you know how much you owe your creditors. But it wouldn’t kill you to try discussing with them about lowering the interest rate. Many times, lenders are more than willing to negotiate; it’s up to you to try.

Factor in debt consolidation

Taking on debt consolidation can be the right strategy if you have multiple credit cards and loan bills that confuse you. Instead of having numerous bills and payments on your mind, you could pay a single, tidy bill.

The most considerable advantage to debt consolidation is that, if you have fewer creditors to pay, you’ll manage to make repayments in time. That is crucial for improving your credit score. Plus, it might simplify your finances, on the whole.

There are cases in which lenders or brokers provide you with attractive interest rates. Nonetheless, do bear in mind that if you’re paying less than the total amount of bills combined, you might have exceeded the repayment timeframe. Make sure you don’t agree to that unless it’s what you want.

So, debt consolidation can be the answer to how to erase debt.

Avoid taking on other loans

Did it ever occur to you that the reason why you’re in debt is that you depend on credit cards on a regular basis? So, if you want to learn how to erase debt, it makes sense to analyse your spending habits and see where most of your finances go. If you reckon that your weakness is utilising credit cards on a whim, you should acknowledge the downsides of such cards and try to address the problem.

We hope that you found our tips on how to erase debt handy. Bear in mind that after you have managed to become debt-free, you should be mindful so that this doesn’t change overnight. One thing is for sure: debt can be managed even with limited income, it is up to you to embrace the right tactics.Save

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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

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.

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Debt Consolidation No Credit Check Loans Personal Loans

Holiday Money Saving Tips

Personal Loan

With the holidays looming ahead, there is no question that the inaugural family trip is in full planning mode. If you’re stressing about it, don’t worry, we’ve put together a simple holiday money-saving tips guide to take the stress away from your vacation.

These helpful tips will help to ease the stress on your wallet and make your holiday enjoyable for you and your family!

Holiday Money-Saving Tips

  1. Snacks & Drinks – Pack bread, chips, sandwich, and ready to eat foods. You don’t need to bring too much but you can save money by providing the snacks. Lollies and energy bars are expensive if bought from convenience stores.
  2. Drinks – Bring soft bottled water so you can refill it from taps. You may also want to pack fruit juices, sodas or bottled water to keep you hydrated.
  3. Charger – Bring power banks, chargers and connectors so you don’t have to pay for charging fees. You can also bring extra batteries if you have them.
  4. Travel tour offers – Go online and take advantage of the latest travel deals. Ticket prices may change depending on the season.
  5. Hotel and Restaurant – Check the rates and freebies. Is there free WiFi, or free breakfast? Some hotel packages may offer free spa and other benefits so don’t be afraid to ask of what’s included in the package. Remember that your goal is to save money. You can take advantage of the hotel’s amenities without paying extra charges.
  6. Bring toys – Keep your kids behaved by bringing small toys, books or gadgets to keep them busy. Keep the little tackers tamed and its bound to be a headache-free experience.
  7. Travel with relatives – The more the merrier. Travelling with your relatives or with another family can be advantageous. This is ideal if you prefer to diffuse the rental costs. The fee is fixed, so increase the numbers in order to reduce the cost per head.
  8. Sanitary kits – Vending machines are everywhere. Save money by bringing your own sanitary napkin, tissue, etc. Bring wipes and sanitizers to avoid a mess.

When travelling, there is no need to compromise on luxury. You and your family deserve to enthral yourself’s in the riches of adventure and relaxation. Let the above steps inspire you to enjoy your vacation whilst preserving the bank.

Happy Holidays

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Debt Consolidation No Credit Check Loans Personal Loans Short Term Loans

How to Save Money on Family Holiday Trips

money management tips

If you’re a full-time worker, going on holiday is the best solution to just get away from it all. But sometimes going on holidays can also be stressful if you don’t have enough money or if you’re worried about spending while you’re on holiday if you’re on a tight budget.

Fear not! If you want to save money while on holiday trip with your family, here are a few useful tips on how to do just that. Follow these simple steps on how to save money during a holiday trip with your family.

How to Save Money on Holidays

  1. Bring toys – Keep your kids behave by bringing small toys, books or gadgets to keep them busy. This way, there is no need for you to stop by at a convenience store to buy overpriced toys.
  2. Snacks & Drinks – Pack bread, chips, sandwich, and ready to eat foods. You don’t need to bring too much but you can save money by at least bringing snacks. Candies and energy bars cost higher if bought from convenience stores.
  3. Charger – Bring power banks, chargers, connectors so you don’t have to pay extra for charging fees. You can also bring extra batteries if you have.
  4. Sanitary kits – Vendo machines are everywhere. Save money by bringing your own sanitary napkin, tissue, etc. Bring wipes, sanitizers to avoid mess.
  5. Drinks – Bring soft bottled water so you can refill it from taps. You may also want to pack fruit juices, sodas, milk or bottled water to keep you hydrated.
  6. Travel tour offers – Go online and see what the latest travel offers are. Ticket price may change depending on the season.
  7. Hotel and Restaurant – Check the rates and freebies. Is there a free WiFi, or free breakfast? Some hotel packages may offer free spa and other freebies so don’t be afraid to ask of what’s included in the package. Remember that your goal is to save money. You can take advantage of the hotel’s amenities without paying extra charges.
  8. Travel with other relatives – The more the merrier. Travelling with your other relatives or with another family may have an advantage. This is ideal if you prefer to stay in a house for rent. The fee is fixed so the more relatives you bring the rate becomes smaller because you divide it per head.

Travelling with your family is not so expensive at all if you learn how to consider other cheap options. You can save money by following the above simple steps. Travelling is no longer a form of luxury these days so it is also a great way to economise with your family while you’re all on holidays.

Holidays are the best time to bond and bring the family closer. Why not go on a holiday with these easy tips so you can enjoy some time off and save money at the same time?

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Debt Consolidation

Debt consolidation loans and the future of personal finance

Consolidation Loans

Banking is evolving to meet the needs of a more technologically savvy customer base. One finance type leading this trend is debt consolidation personal finance. Non-bank lenders are offering many of the same services as big banks and also offering those services in handy mobile applications on smartphones. Many large institutions are beginning to realize that they must become as fast and available online as the smaller lenders.

Debt Consolidation Personal Finance online

Even something as common as consolidating multiple debts into one monthly payment with lower interest rates and easier payment terms is becoming something that can be done online without having to physically go in and speak with a financial advisor.

Modern banking is done more and moreover the Internet and through mobile applications and this is great for both the lender and the consumer. The consumer has many more options at their fingertips like alternative lending that is based on their social media profiles as well as their bank statements. Peer-to-peer lending has also become more popular now with a person’s access to thousands of individuals who are able to lend or a group of people who are willing to come together and lend small amounts of money to persons or businesses in need of capital.

Having more options for ways to get capital means that individuals and small businesses can reach out to a variety of lenders to get the funds they need. If someone needs to consolidate their debts into one and have the repayments lowered due to lower interest rates, they will also have the added benefit of being able to negotiate the repayment period to whenever it is most convenient. Non-traditional lenders have taken to new technology very quickly and the big banks are just starting to catch up.

The future of banking like mortgage loans to debt consolidation loans in Australia is going to be online and performed through non-human avatars that are battling to give the consumer the lowest possible rates and the most competitive options. The public will be the ones to benefit in the future of banking by having more options online and also having the added benefit of not having to pay for extra service fees. The new banking systems in the future will have to offer rock bottom cost and top quality services because of the competition.

Debt consolidation loans are the type of loan that is on high demand in Australia since most people have multiple debts and they find it hard to make punctual payments. Non-bank lenders that offer debt consolidation loans attract the majority of customers due to their presence online. Australian Lending Centre is the leading debt consolidation loan provider in Australia, extending their helping hand across the country. So fill in the quick enquiry form to apply for a debt consolidation loan online and one of the friendly financial experts at Australian Lending Centre will be in touch to help approve your loan as soon as possible.

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Debt Consolidation

Debt Consolidation Bad Credit Loans

debt consolidation bad credit loans

Unfortunately, many Australians who are overwhelmed by their debts can find themselves missing some of their monthly payments. This can lead to your credit score taking a big hit. If you have multiple debts and a bad credit history then you could lose financial control before you know it. Fortunately,  debt consolidation bad credit loans are a possible solution for many. Giving you the option to not only save thousands but also to build your credit score back up!

Traditional banks are highly unlikely to take a risk on granting finance to somebody with a poor credit history. This is where Australian Lending Centre can help. Through our debt consolidation bad credit loans, we can help you get back in control of your finances. Even if you have a bad credit rating or a limited credit history, Australian Lending Centre is here to help you.

How do Debt Consolidation Bad Credit Loans Work?

Bad credit debt consolidation loans work in the same way as regular debt consolidation. Essentially these loans allow people with a bad credit score to consolidate their debts into one, easy to manage loan.

This means that instead of paying multiple credit repayments each month, an individual with bad credit can simply pay one monthly repayment, giving them more financial control and a heightened ability to pay back their debts. Even better, with debt consolidation bad credit loans you could secure a lower interest rate than the combined rates of your current debts, which could save you hundreds of dollars each month.

Debt Consolidation Bad Credit Loans with Low Interest Rates

If you have a bad credit rating, debt consolidation bad credit loans could help you pay off your debts at a lower interest rate. This could not only save you money but also reduce the risk of defaulting on your payments.

Let’s look at an example. If you are paying off multiple debts, the chances are that a few of those debts will be from credit cards. Credit cards have higher interest rates than most other loans, and these rates become even higher when you miss a payment. In addition to this, each of your creditors may charge a fee for missing a payment or for other reasons. With all of these extra payments and high-interest rates, you may find yourself paying far more than you need to be.

The solution? Debt consolidation bad credit loans can help you clear high-interest debts such as credit cards and enable you to take control of your finance. After clearing your debts with your debt consolidation bad credit loan, you can repay your new loan at a lower interest rate.

Rebuilding your Credit Rating Through Debt Consolidation

Clearing multiple debts with a bad credit debt consolidation loan could help improve your credit rating, as you will have a lower risk of multiple defaults and have less unpaid debts to your name. Even better, successfully paying off your bad credit debt consolidation loan could help rebuild your credit rating, giving you more financial freedom in the future.

You don’t need to struggle with multiple debts. Call Australian Lending Centre today on 300 138 188 or fill out our Express Enquiry form, and find out your financial options.

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Debt Consolidation

Should I Consider Debt Consolidation?

debt consolidation

Consider Debt Consolidation?

A lot of consumers are confused about debt consolidation. Most assume that debt consolidation is only necessary when you’re living pay cheque to pay cheque or you’re facing bankruptcy. The fact of the matter is that anyone can benefit from debt consolidation and they don’t have to be underwater to do so. In fact, taking advantage of debt consolidation before your bills get out of hand can actually prevent further damage to your credit file.

What is Debt Consolidation?

Debt consolidation combines multiple loans and credit cards into a single loan and payment. You do so by applying for a new loan through a debt consolidation specialist and using that loan to pay off your current debts. Then, you repay the single loan to the lender.

Not all debts can be consolidated. Debt consolidation loans are meant for credit cards, some medical expenses, store credit cards and personal loans. Your home loan or business loan cannot be placed into debt consolidation.

Continue reading “Should I Consider Debt Consolidation?”
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Business Consolidation Loans Business Loans

Business Debt Rising

debt consolidation loans

While there has been signs of business recovery in wake of the GFC, don’t be fooled into thinking that all businesses are out of the woods.

Recent data from the Australian Bankers’ Association, ASIC and the credit brokers show that there’s another wave of bad debts, administrations and insolvencies pending in small business land.

ASIC’s latest data on companies entering external administration for February 2010, was 827 which was higher than 2009 at 796 – with company insolvencies hitting 1159 nationally.

Continue reading “Business Debt Rising”
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Debt Consolidation Business Consolidation Loans

Why Consolidate Debt?

reasons to consolidate debt

For people who are suffering from financial stress, a loan for debt consolidation may be the perfect solution.  A debt consolidation loan can offer the financial help required and also prevent serious situations like bankruptcy, lost assets and garnishments.

Australian Lending Centre offers a variety of plans to help you combine your debts into a single debt consolidation loan with one weekly/fortnightly/monthly payment.  Debt consolidation, as the name suggests, allows you to repay all of your existing debts whilst combining the entire debt into a single loan.  This means that you only need to focus on repaying one lender, apposed to multiple creditors.

Our consolidation loans offer the industry’s most competitive interest rates; if we can’t save you money we won’t give you a consolidation loan.  However, we will share some smart financial tips on how to get out of debt or achieve your financial goals faster and have everything ready for you to move ahead quickly the moment a debt consolidation solution is the most viable option to save you money.

We can show you how to roll all your debts including credit card debt, personal loans, car loan, not to mention your home loan, into one easy monthly repayment for your debt consolidation loan.  We are committed to assisting you to find a fast and easy solution to your current credit card debt crisis. Credit card consolidation is often one of the main reasons for people to seek a debt consolidation loan.

Take for example a credit card debt of $5,000.  If you pay the minimum repayment of say, 2% of the balance, it could take you 3 years to pay it off and you could pay up to $15,000 of interest.  With debt consolidation from the Australian Lending Centre, you could pay this $5,000 back in 2 years with as little as $50 per week, with interest charges in the low hundreds instead of thousands of dollars.

In conclusion, a debt consolidation loan has 3 major benefits:

1. Save Money

A debt consolidation loan helps you to save money by reducing the amount of interest you pay. Many credit cards available in the market can charge interest in excess of 18%.  The Australian Lending Centre can help you consolidate credit cards with an interest rate as low as 5.16%, saving you a huge amount of money that you can put to better use.

2. Reduce Repayment Periods

With a debt consolidation loan, you can get out of debt faster by paying a much lower rate of interest as put simply, there will be less to pay back and possibly more disposable income to pay it down faster.

3. Save Time

When you consolidate debt with a debt consolidation loan, you only have to make one repayment instead of having to make several payments on credit cards, store cards and personal loans.

We have multiple debt consolidation options, including a debt solution that can freeze your current interest and prevent any further interest and charges accruing.  To find out more, call 1300 138 188 to speak with a debt consolidation consultant today, or fill out an enquiry form to your right and we will contact you shortly.

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Debt Consolidation Debt Management

Why Get A Debt Consolidation Loan?

Why Get A Debt Consolidation Loan?

Debt consolidation is a strategy to consider if you have accumulated a large number of multiple debts and you’re starting to wonder how you will pay your bills off. Anyone in this situation, struggling to pay off bills knows how difficult it is to manage everything seamlessly, and missed payments can result in fees, penalty charges and additional high interest, especially from credit cards and payday loans.

If this debt situation sounds familiar to you, it may be time to talk to a professional and to discuss debt consolidation.

Bank Loans

Many large banks have stringent procedures in place with regard to offering people in trouble with additional credit. When this happens, in your particular case, you still have a number of options available to you. Most importantly, don’t panic. There is always a way to overcome debt. Even with a poor credit score.

Debt consolidation loans

There are a number of lenders in the market, that can assist people in financial difficulty caused by numberous loans and debts. At the Australian Lending Centre, we have helped thousands of clients find their way, after they have found themselves in financially challenging positions. This may be due to a incurring bad credit rating, becoming unemployed, experiencing major unexpected expenses such as illness or injury, having a poor financial history or going through through divorce. In unfortunate circumstances like these, it can be difficult to get a loan from the bank, but the Australian Lending Centre is here to help with debt consolidation and debt management.

What is a Debt Consolidation Loan?

A debt consolidation loan is one single loan taken out in order to pay off multiple debts. The right debt consolidation loan will reduce your monthly payments and hopefully the interest rate you are currently paying.

How does a Debt Consolidation Loan work?

A debt agreement provider, such as Australian Lending Centre, will assess your situation to see if they can help you find your way out of financial difficulty. We contact your creditors are contacted and an affordable payment plan is agreed according to your budget, subject to approval from your creditors. You will then enter an agreement to pay one lower and more affordable amount on a regular basis to clear your debts. This is due to the fact that most debt consolidation companies are able to package your existing debts into a lower interest loan.

After you have taken out a debt consolidation loan

If you take out a debt consolidation loan, your debt may become more manageable than it used to be, but you will absolutely need to make regular payments or you could end up in a worse situation. We recommend strongly that you remove the temptation to use your credit cards and other easy forms of credit. One key way to help improve your situation is to truly understand how you ended up here. Our budget planning calculator can help you see where your money is going and help you cut back on unnecessary expenses

Are Consolidation loans always the right solution?

It is important to note that a debt consolidation loan may not necessarily be the right debt solution for you. A professional debt consultant can help you understand all the pros and cons, so you can choose the solution that’s best for you. A less favourable way to get out of debt is bankruptcy. While sometimes, declaring bankruptcy may seem appealing in the short term, in fact, this solution may cause more trouble in the future. You may want to look at various forms of debt management, such as negotiating with your creditors for lower or no interest, reduced debt or more favourable payment terms. Or you might consider a Part 9 Debt Agreement.

Where to get debt help?

If you are finding your debts are out of control, call the Australian Lending Centre on 1300 138 188 to speak to a consultant today. We will discuss the best debt solutions for your unique situation.