A debt consolidation loan may be the perfect solution for people suffering from financial stress. But why consolidate debt? This financial solution can get you out of your difficult financial situation and prevent serious situations like bankruptcy, lost assets, and garnishments. Find out how below.
If you have accumulated multiple debts and are starting to wonder how you will pay your bills off. Anyone in this situation struggling to pay bills knows how difficult it is to manage everything seamlessly. Missed payments can result in fees, penalty charges, and additional high interest, especially from credit cards and payday loans.
Our criteria for consolidation loans are simple: if we can’t save you money, we won’t give you a loan. However, we will still try to help in any other way that we can – for instance, helping you to create a budget.
What happens if I’m approved for a debt consolidation loan?
You could roll all your debts, including credit card debt, personal loans and car loans, into one easy monthly repayment with a debt consolidation loan. 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 2% of the balance, it could take 3 years to pay it off, and you could pay up to $15,000 in 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.
Why get a debt consolidation loan?
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.
Debt Consolidation from Banks vs Private Lenders
Many large banks have strict procedures in place to provide loans. They also look very closely at your credit score, which can make things difficult if you have some marks against your name.
With private lenders having more lenient lending criteria, there is often a wider variety of solutions to overcome debt, Even with a poor credit score. This might include loans with no credit check, bad credit loans, and more.
Get Support Today
If you are finding your debts are out of control, complete our online application form here or call the Australian Lending Centre on 1300 138 188 to get help today. We will discuss the best debt solutions for your unique situation.
