How do you know if you should get a debt consolidation loan?
Get Debt Free » Blog » Featured Articles » Debt Consolidation
So you are in debt and wondering how to get yourself out of it. You have heard people talking about debt consolidation loans, maybe you have seen an ad on TV or online somewhere. Whilst these loans seem like a good idea, how do you know if they are right for you.
The best way to figure this out is to discuss it with a professional debt advisor, such as those at the Get Debt Free. If you want to learn a little more about these types of loans please read on. This article should get you feeling a little more confident in knowing whether or not a debt consolidation loan is right for you.
If you have been reading the other sections of this site, you should already have a pretty good understanding of what a debt consolidation loan is. Just in case you haven’t see that article, a debt consolidation loan is a one that you take out to repay several other debts. The idea is that it makes it easier for you to keep a track of your repayments and it may also help you save a little on interest and account keeping fees.
Is it right for you?
Ultimately, the answer to this question is going to depend largely on your particular circumstances. If you have lots of different debts (like credit cards) and you are struggling to keep track of the repayments, a debt consolidation loan might be worth considering.
One of the things we always hear from our clients is that they get discouraged when they open their bills every month and see that the amount they owe never seems to reduce. This feeling of treading water, which can be caused by things such as late payment fees or penalty interest, only adds to the stress that someone in debt feels. With a debt consolidation loan, you might be able to see better progress, due to the fact that you are making one larger repayment that is easier to keep a track of. This can help keep you motivated and is less stressful than seeing many debit balances that never seem to go down.
If you still have any questions, or would like to talk to someone who has lots of experience working with people are in debt, then we can help you work out if a debt consolidation loan is the right option for you. Our free advice line is contactable on 1800 98 10 70.
Avoid any disastrous outcome of a debt consolidation loan.
Get Debt Free » Blog » Featured Articles » Debt Consolidation
On the surface, a debt consolidation loan seems like a good idea. You get the benefits of one easy repayment to manage only one loan and potentially a lower rate of interest. If you are successful in applying for a debt consolidation loan you may be able to bundle various loans or credit cards and save on reduced fees and charges.
Whilst all this is can be true, there are implications that are often overlooked when getting a debt consolidation loan. Any debt consolidation loan must be underpinned by a sustainable household budget.
For example, lets say you are successful in obtaining a debt consolidation loan without preparing a thorough and sustainable household budget. If you fail to prepare a sustainable household budge and stick to it week in week out, then you will inevitable fail and default on your debt consolidation loan. Defaulting on a debt consolidation loan can lead to a disastrous outcome. If you default on your debt consolidation loan, it could lead to
bankruptcy .
The way to avoid any disastrous outcome is to ensure your debt consolidation loan is underpinned by a thorough and sustainable household budget. To prepare a sustainable household budget you should consult with a professional financial planner.
If you have been refused a debt consolidation loan, then that is when Get Debt Free may be able to assist you. We do not offer debt consolidation loans, we only help people with alternative debt solutions.
We offer a
free debt assessmenton-line or call us to speak to one of our highly trained
personal debt consultantson
1800 98 10 70.
Options if you have been refused Debt Consolidation
Get Debt Free » Blog » Featured Articles » Debt Consolidation
If you have been refused a debt consolidation loan, you may wish to consider other options.
These options may include the following, particulary if you have unaffordable debt and you are personally insolvent (ie cannot pay your debts as and when they fall due)
Debt Agreement is a legally binding contract by you and your creditors.
Debt Agreements were added to the Bankruptcy Act in 1996 to assist low income earners to repay your debt in an affordable payment plan. The agreement represents a compromise between you and your creditors.
Debt Agreement does not eliminate your debt—it aims to provide affordable payment terms. Debt agreements are supported by Commonwealth legislation and are regulated by ITSA. A formal debt agreement will appear on your credit file for seven years and your name will be listed on the National Personal Insolvency Index for life.
If you think that Debt Agreement may be the best solution for you, contact us today. Our friendly staff will assess your situation.
A Personal Insolvency Agreement is similar to a Debt Agreement, however, it is for people who have higher levels of debt or income. View the statutory thresholds here.
Alternative Options of Debt Consolidation
Get Debt Free » Blog » Featured Articles » Debt Consolidation
Financial stress and pressure makes it difficult to find debt strategy to suit your situation. Some people just ignore it. Unfortunately, your debt rarely disappear without doing anything. It needs to be sorted immediately.
You maybe unfamiliar about terms like Bankruptcy, Debt Consolidation, Debt Agreement, Personal Insolvency Agreement. If you are curious about those terms above to suit your distress situation, you’re not alone. Let us guide you through complex assessment and choose the best debt relief solution for you.
What are my options?
Get Debt Free offers toll free line 1800 98 10 70. Our consultant will give you initial advice for free. Also they will let you know the best option for you in the first call without obligation.
Generally, the initial call session will takes up to 20 minutes in average depending on the details you provide us. Our friendly staff will ask your income, expenses and all your debts to be able to examine closely. We will let you know your debt solutions and your repayment plan.
At the end it is your decision to go ahead with our obligation free suggested solution.
Debt Consolidation may not suit your situation.
Debt Consolidation is the most popular debt solution that people think off. But it may not suit your situation. Remember there are few alternative debt solutions available.
You may being offered to consolidate your debts in your mailbox. However, it may not best option for you. Some people are not eligible for debt consolidation.
You may think of refinancing your house to access the equity to pay off all your debts. You may also expecting extra money by the end of the month. It is not that simple! It may increased your financial hardship. Since the global financial crisis, banks is tightened their lending.
Speak to us today about your financial hardship. We will find the best debt solutions for you.
