Debt Consolidation Loans: It’s a familiar story – you open an account here, another one there and swipe your credit card a little too often. You get discounts when you open more store accounts – and let’s be honest, you never read the fine print and payment terms – and before you know it you are drowning in a sea of accounts you need to somehow remember to pay off on time.
Add that to the money you already owe on your car, your house or other personal loans, and you’re swimming in debt, scrambling to find a way back up to the surface so you can breathe a little easier and get all your creditor loans outstanding balances bundled into the one loan to get them paid off quickly. It’s easy for things to get out of hand and it happens to the very best of us. However, there may be a solution.
How debt consolidation loans can help
Here’s where we come in. We offer personal loans for debt consolidation, otherwise known as debt consolidation loans.
With a debt consolidation loan, you could get all your debtors into one bundle reducing your commitment levels and getthing them paid off quickly. Then, focus on making just one payment at a reasonable rate, over a term that’s manageable for you. If you stick to your repayment terms, before you know it all your stress could be under control and see you on your way to financial wellness, which is what we’re all about. Of course, everyone’s financial situations are different. To find out if a debt consolidation loan is an option for you, apply now.
Making sense? Let’s look at what debt consolidation loans are all about.
What does debt consolidation mean?
Debt consolidation sounds complicated, but it’s a pretty simple process.
Instead of paying off various loans, debts and bills at different interest rates, you add up all the amounts that you owe and borrow money to pay them all off. This means you would be repaying one lender at a fixed interest rate.
In a nutshell, you’re taking out a single loan to pay off numerous smaller loans or debts. You’re consolidating loans, paying them off, and in doing so, paying off one loan – the one that was used to pay off your many loans or accounts.
Depending on your lender and your individual circumstances, you may be able to arrange better payment terms and rates for debt consolidation loans.
Some lenders also offer debt negotiation, which involves taking the creditors off your back. So, you can focus on making sure you pay off your consolidation loans. They’ll work out a debt agreement with your different creditors to help you make your loans more manageable.
What is a consolidation loan?
A jacaranda debt consolidation loan is a loan where you are able to apply for up to $10,000 to repay all your loans in one swoop, leaving you with just one debtor to pay off. You take out one big loan that allows you to pay off all your outstanding debts. Then you are just left with having to pay off one loan with one set of fees. It allows you to simplify things in your life.
By consolidating loans, you’re cutting out a lot of extra stress – and the risk of forgetting one of your loans.
How secured debt consolidation loans work
If a loan is unsecured, it means it is loaned to you without security – you don’t have to put up a boat, car, house, motorbike or caravan to secure the credit that you need.
Different from unsecured loans, secured loans require you to put up an asset as security for the loan. Since you are borrowing a larger amount, this is to protect the lender. If you were unable to repay the loan the lender would have the right to repossess the asset. We accept cars, motorbikes, boats and caravans as security.
If you need to borrow more than $2,000, you can apply for secured personal loans with us. We’ll do an assessment of your circumstances to make sure you can afford your loan. What do you need to do? Glad you asked! You’ll need to send us a registration document showing you as the owner of your car, boat, caravan or motorbike. If you have that ready, you can go ahead and apply right now!
Is it better to consolidate your debt?
If your loans are starting to make your head spin, consider loan consolidation. Debt consolidation loans can be used to gather all of your debts into one loan that is more manageable. Plus, it means that instead of paying multiple interest rates and credit fees, you pay just one debt consolidation loan fee. This can ultimately save you money, as well as a lot of stress.
Is debt consolidation bad for your credit score?
It is worth pointing out that often, the damage the damage of credit enquiries is done with poorly repaid loans before a consolidation loan is given. What a debt consolidation loan may do is prevent you from worsening your credit score if you make your scheduled repayments without any defaults. Having a lot of debt and not making regular repayments can damage your credit score. Managing multiple debts can mean you are more likely to miss payments. Therefore, getting a personal loan to cover all your debt, and then paying off the personal loan can help prevent further damage.
What does debt consolidation do to your credit score?
If you consolidate loans and apply for unsecured debt consolidation loans, you could make sure that all your creditors are paid off quickly. While you won’t be able to do anything about the black marks you have on your record already, you’ll be able to avoid getting any new ones. Paying off your various debts and having less debt can make your credit score stronger.
Debt consolidation loans Australia
If you’ve been looking up debt consolidation loans Australia, what they are and where you can find them, you’re in the right place. Below, we’ve explained what debt consolidation companies are, as well as how and where you can apply for debt consolidation.
What are debt consolidation companies?
There’s a distinct difference between a debt consolidation company and a debt consolidation loan.
A debt consolidation company works as an intermediary between you and your creditors to help you work out feasible repayment terms. And where possible, reduced rates for bills owed. A debt consolidation loan from a lender like us can help you pay off outstanding loan repayments. And could leave you with one fixed rate loan. If you’re a viable candidate, we could issue you with a loan that allows you to pay off your current creditors.
Apply with us and we will assess your application. If your application is accepted, we’ll send you a loan contract to review. Then, if you are happy with the terms and conditions, send us back the signed contract. Sounds good, right?
Where can I get a loan to consolidate my debt?
It doesn’t matter where in Australia you are, because you can find debt consolidation loans online. You don’t even to leave your house! All you need to do is scroll up to the top of this page. Then, fill out the quick online application form. If you’re applying during regular working hours, we could have an outcome in just 60 minutes. Easy as!
What is a credit card consolidation loan?
If you’ve managed to rack up an array of plastic debts, you’ll know that repaying all the different companies that have issued them can be a nightmare. A credit card consolidation loan would be one central loan that you could use to consolidate debt loans and pay them all off. Debt consolidation loans can save you from these hefty fees and allow you to pay off your debt in one shot.
How do I find the best debt consolidation loans?
Looking for the best debt consolidation loans Australia has to offer? Check out a few different lenders (like us!), or visit some comparison websites to find out who they recommend. It’s a good idea to get to know the different terms involved so that you know what you’re looking out for.
How much does it cost to borrow debt consolidation loans?
With us, you can borrow two different types of debt consolidation loans. You can either get small short-term loans of up to $2,000, or larger medium-term loans of up to $10,000.
The costs for each type of loan varies slightly.
Unsecured loan costs
For smaller unsecured loans, those are amounts of $2,000 or less, you will notice that there is an establishment fee. This is around 20%, paid off over your first few repayments. Then additional fees will cost around 4% per month. These smaller loans can be repaid over a period of up to 12 months.
To give you an example of what the costs look like, here is a breakdown of the repayments:
The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on our loans between $300 and $2000 is 199.43%. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Click here to see a worked example.
Secured debt consolidation loans costs
Now, if you’ve got debts to pay off, you might want to look for medium secured loans, which are between $2,100 and $4,600.
The Interest Rate for Secured Medium Loans is 48%. Maximum Comparison Rate is 67.41% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Click here to see a worked example.
You could also apply for a loan of $5,000 to $10,000.
The Interest Rate for Secured Large Amount Loans is 21.24%. Maximum Comparison Rate is 48% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Click here to see a worked example.
These are just examples. However, if you want to find out what the costs of loans could be, just scroll on up and use of debt consolidation loan calculator. You’ll be able to play around with the length of your loan term and frequency of payments.
All lenders are required to display a comparison rate. It’s meant to help you compare lenders by understanding how their fees and charges are bundled together.
Remember, if you miss a payment, you’ll be charged a dishonour fee. This is a fee of around $35, therefore it’s important to keep your payments up to date. Or arrange for them to fall on the day after payday so you know there will be money available in your account – no one needs any extra money or stress added to their repayments, right!
Whoops – I have bad credit. Are there debt consolidation loans for bad credit?
There are. The best thing to do is apply, or give us a ring on 1300 189 823 so we can chat about at your individual situation. That’s because we prefer to look at customers on a case by case basis. Therefore, we think a person’s credit rating isn’t always an accurate representation of their true relationship to finance.
Instead, we look at your recent financial history and how you’re currently managing your money. This accurately assesses your situation and removes presumptions based on a low credit rating.
We’re committed to our customers and will never offer you a loan we know you can’t afford. We also know that there may be things on your credit record that don’t reflect where you are in your life right now, how responsible you’re trying to do by looking for bad credit debt consolidation loans and trying to consolidate your loans in the first place.
If you’re on the hunt for the consolidation loans Australia offers, or a person in need of consolidation loans with bad credit, look no further.
Head on over to our debt consolidation loan calculator and apply today.
As a result, we’ll let you know if you’re eligible in just 60 minutes or less. Give it a try! If you want to learn more about money management, enlist help of the experts on the MoneySmart website.