The benefits of a debt consolidation loan include:
- One payment instead of multiple payments
- Possible lower interest rate
- Lower repayments (due to extended payment period)
- Could save you money
- May help you gain control of your finances
- May be easier to budget and/or make payments
A debt agreement is one way of consolidating your repayments and is generally more popular than a debt consolidation loan, as you may not have to pay any interest or pay back the full amount that you owe.
Debt consolidation is more typically referred to when talking about a debt consolidation loan. For example, if you have a credit card, a car loan and a personal loan you could take out a larger loan to pay them all out. Depending on your situation, a debt consolidation loan may only be beneficial if you can get the new loan at a lower interest rate than the average rate of your current debts.
It’s important that you get the right advice when considering a debt consolidation loan as it could put you in a worse position, especially if you’re already struggling with your current payments.
Debt consolidation may be a viable option for you, but as with all debt solutions it will depend on your individual situation. Our aim is to understand your situation completely by conducting a full assessment of your financial position and working with you to develop a budget, before we offer appropriate options.
Call us on 1300 298 834 right now, to find out if debt consolidation is right for you or get in touch through our contact page.
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