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.
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.