Debt consolidation is a route to consider if you have accumulated a large amount of debt and you’re starting to wonder how you will pay your bills. Anyone in this situation, struggling to pay bills with multiple debts knows how difficult it is to manage everything seamlessly, and missed payments will result in penalty charges.
If this situation sounds familiar to you, it may be time to talk to a professional and ask for assistance.
Many large banks have stringent procedures in place with regard to offering people in trouble additional credit. If this happens in your particular case you still have a number of options available to you so don’t panic.
Debt consolidation loans
There are a number of lenders in the market, who can assist people who have found themselves in financial difficulty. At the Australian Lending Centre, we have helped thousands of clients who have found themselves in challenging positions. This may be due to our customer’s incurring bad credit ratings, becoming unemployed, experiencing major unexpected expenses, having a poor financial history or having just gone through a divorce. In circumstances like these, it can be difficult to get a loan from the bank, but we are here to help.
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 get you out of financial difficulty. After this, 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 still need to make regular payments to it. You will need to be self-disciplined and get rid of your lines of easy access credit. One way to help improve your situation is to understand it. Our budget planning calculator can help. If you choose to keep these lines of credit, before long you will be back in a worse situation than the one you are currently in.
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.
Where to get debt help?
Call the Australian Lending Centre on our free call number 1300 138 188 to speak to a consultant today who can discuss the best debt solutions for your particular situation.