Debt Consolidation

Debt Consolidation - Combining Credit Cards & Personal Loans.

The FIRST decision that needs to be made when deciding to apply for a debt consolidation loan is will you be in a better financial position.

That is to say, when you have combined for example a personal loan and a few credit / store cards, will the repayments be less, giving you a better cash flow position?

We have included a personal loan calculator for you that will give you a repayment figure after a debt consolidation loan.

Lenders in general set the minimum monthly repayment on a credit card at 3% of its outstanding balance. So generally speaking the consolidation of a card will get you to pay off the debt faster; and the repayments will be generally lower by consolidating if the amount of the new loan is over $15,000 because the term can be over 7 years.

Many people have 'collected' credit cards, and store cards over the years, and are now in a position where they want one manageable payment for them all, before they end up in unmanagable debt, so only one payment is made, at a frequency that suits; weekly, fortnightly or monthly.

In many cases 7 year options are used to consolidate cards and loan contracts originally structured over a 5 year term, making the overall repayment lower with a debt consolidation loan.

Because of the nature of what is being financed with a debt consolidation loan, it is not possible to take security over the item/s being financed, so the financial product will most often be an 'Unsecured' personal loan.

The performance of the credit cards and any personal loans to be consolidated must be acceptable to the 'consolidating Financier'; Banks in particular do not take on bad debts from another lender, so personal loans to consolidate must have the last 6 months paid on time. Credit cards to consolidate must have no late payments or over the credit card limit amounts for the most recent 3 months.

Do You have a Bad Credit History, and wish to Consolidate your Debt, to make life Easier?
There are Lenders who place importance on your ability to pay, and not your credit history.

If you have tried a Bank for a debt consolidation loan and they said no, then apply below for a debt consolidation loan from lenders who accept a bad credit rating.