Home > What Is A Debt Consolidation Loan Comparison Rate?
What Is A Debt Consolidation Loan Comparison Rate?
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Want to compare different debt consolidation loans?
While conducting a debt consolidation loan comparison may seem initially confusing to many of us, it really doesn’t need to be. Debt consolidation loan comparison rates help borrowers compare different consolidation loans and allow us to make an informed decision about the cost our the loan. Jacaranda can offer consolidation loans of up to $10,000.
What Is A Comparison Rate?
A comparison rate is a percentage figure that allows borrowers to get a better idea of the cost of different loan products, and in turn, make a more informed decision. A comparison rate is calculated by reducing the interest rate plus most of the fees and charges on a loan, down to a single number.
Borrowers should be aware, however, that comparison rates may not factor in all the possible fees and charges that may be payable on a loan. They are, essentially, just a guide on what you could expect to pay on your loan.
What Is A Debt Consolidation Loan?
A debt consolidation loan is a loan that combines all your existing debt into one, more manageable loan. Debt consolidation loans may be a great way to make your budget more manageable and to reduce stress. Additionally, consolidating multiple debts with a debt consolidation loan may even save on your interest rate and fees.
In other words, let’s say you have three existing debts on a variety of different personal loans and credit cards. This means, every week/fortnight/month, you will have three different repayments to remember on three different days. This can quickly become confusing, and in some cases, unmanageable.
If this is the case, borrowers are able to apply for a debt consolidation loan, that will settle these above three debts. So, the borrower is able to settle these three debts, and then only have one repayment to remember on their new consolidation loan.
Jacaranda is able to offer debt consolidation loans of up to $10,000.
What Is A Debt Consolidation Comparison Rate?
One will notice that, when searching online for different loans, there is a myriad of different options available. Added to this, is the huge amount of different fees, charges and percentages associated with the loan. This can get especially confusing for borrowers who are not familiar with financial jargon.
Luckily, however, things have been made a little easier for borrowers. Comparison rates reduce the interest rate plus most of the fees and charges relating to a loan down to a single figure. Essentially, the comparison rate will allow you to get an idea of how much your loan may cost.
Comparison rates, while being very useful, are, however, not the only thing to consider when looking for a loan. Keep in mind that it is important to explore what features each loan offers, and how important these are to you.
Should I Get A Debt Consolidation Loan?
The suitability of debt consolidation loans will depend on both a borrower’s personal and financial situation. In some cases, it may indeed be cheaper for a borrower to settle their existing debts with a consolidation loan, as they may save on their overall fees and charges. There are, however, certain things borrowers should consider before they start conducting a debt consolidation loan comparison:
Always confirm that your consolidation loan will be cheaper to repay than your existing debts. Additionally, it is imperative to be sure you will be consistently able to afford the repayments on your new loan, to avoid going further into debt.
Early Repayment Fees
Some loans will require borrowers to pay additional fees and charges if they wish to settle their loan early. When conducting a debt consolidation loan comparison, always include the early repayment fees and charges you may incur.
Keep in mind, however, that you will not be charged an early repayment fee on your Jacaranda consolidation loan.
Before you do a debt consolidation loan comparison between different lenders, make sure they are, like Jacaranda, licensed by ASIC and legally allowed to operate in Australia.
Does Jacaranda Offer A Debt Consolidation Comparison Calculator
You are able to view access our debt consolidation comparison calculator at the top of this page. Simply enter in the amount you are thinking of borrowing, as well as your ideal repayment terms, and we’ll give you an idea of what your loan may cost.
Personal Loan Debt Consolidation Comparison
If you have multiple personal loan debts that you are struggling to keep track of, consider applying for a debt consolidation loan with Jacaranda. After all, you may find it cheaper to consolidate your existing personal loan debts into one, more manageable, debt.
You are able to conduct a personal loan debt consolidation comparison online. At Jacaranda, we are confident we offer competitive, reasonable rates on our debt consolidation loans, so we invite our customers to compare us with different lenders before applying.
How Is A Debt Consolidation Loan Comparison Rate Calculated
It can be complicated to compare various consolidation loans that have different interest rates and fees. This is why credit providers must give a debt consolidation loan when they advertise their loan products.
How then, is a comparison rate calculated? In short, the comparison rate includes the interest rate and additional fees and charges. Below, is a rough example of how comparison rates are calculated.
||Fees & Charges
Disclaimer: The above amounts are for demonstrative purposes only. They do not, in any way, reflect the average interest rates, fees & charges or comparison rate of a Jacaranda consolidation loan. Rather, this is a simple demonstration of how comparison rates are calculated.
Pros And Cons
There are certain situations where consolidation loans may be helpful. They may not, however, suit everybody. Therefore it is important to be aware of both the benefits and drawbacks to consolidation loans:
- Easy Repayments: Consolidating your existing debts will make repayments much simpler. Instead of having to be aware of multiple repayments, you now will only have one to manage. Jacaranda will also set up direct debit transfers from your account. Once you have settled your consolidation loan, the direct debits should automatically cease.
- Reduce Payments And Costs: Consolidation loans may reduce what you pay overall in fees and costs.
- Reduce Stress: Consolidating your loan will reduce the number of phone calls you will receive from debt collectors and lenders chasing up repayments.
- May Increase Debt: failing to make repayments on your consolidation loan may incur additional fees and charges.
- May Be Charged Exit Fees: Your existing lenders may charge you early exit fees when you settle your debts.
Jacaranda Comparison Loan
Jacaranda can offer debt consolidation loans ranging from $300 to $10,000. Additionally, when consolidating with Jacaranda, you will also enjoy a wide range of benefits:
Jacaranda believes in trust; we will always include the total cost of the loan, as well as all potential fees and charged in the loan contract. Therefore, before you agree to a Jacaranda consolidation loan, you should always know exactly what you’re signing up for.
Jacaranda will always act in a fair and reasonable manner. Additionally, we comply with responsible lending practices. This means we will always conduct a thorough assessment of your financial situation, and never offer a loan we feel you will be unable to pay.
Fast and Easy
We have designed our loan application process to be as simple and as streamlined as possible. Applying for a Jacaranda loan won’t take long, and if you apply during normal business hours, we’ll get back to you ASAP.
We’ll only ask you to provide information that is necessary and no more. Additionally, we’ll make sure your information is always safe and encrypted.
Our customer service team is highly trained and compassionate. If you feel you will be unable to make a repayment on one of your loans, get in contact with us 24-hours before your payment is due, and we should be able to work something out.
Am I Eligible?
To apply for a Jacaranda debt consolidation loan, just make sure you meet the following eligibility criteria:
- Applicants must be 18-years of age or older;
- You must have received some type of regular income for the last 90-days into a personal bank account;
- All applicants must have an active mobile phone number and email address;
- You must have internet banking set up on your bank account.
What Documents Will I Need To Provide?
Completed a debt consolidation loan comparison and decided on Jacaranda? To breeze through our application process, just make sure you have these details and documents handy:
- Personal details like your online banking and employment information;
- An active email address and mobile number;
- The reason for your loan (in this case, debt consolidation);
- Your MyGov details (if you are receiving Centrelink);
- Employer contact information.
If we need any additional documentation, we’ll get in touch directly.
Get In Contact
If you have any questions about anything you’ve just read, jump on over to our FAQs or get in contact. You can send us an email via the form on our contact us page, or alternatively, give us a call on 1300 189 823.