Debt Consolidation Loans 

If you’re like many Australians, you might have ever-increasing credit card debt, a car loan, maybe even a payday loan. You might find yourself shelling out a large amount of your salary each month just to service this personal debt.  You might also find that the interest rate on these loans is well over 10%.  Instead you can consolidate your debts by bundling your credit card and other personal loan debt into one loan and consolidate it at a lower interest rate.

How Debt Consolidation Loans work

Debt consolidation works where you take the debt from two or more loans and combine them into one loan, otherwise known as a ‘debt consolidation’ loan. Doing this reduces the interest you pay, reduces the time you take to pay out the loan and boosts your own cash flow as well. Another benefit of a debt consolidation loan is that it makes life simpler - one easy-to-manage repayment instead of many. Debt Consolidation loans can be used for paying out personal loans, paying out credit cards or even combining home loans.

At the end of the day, your repayments will reduce dramatically and you’ll therefore save a lot of money. It makes sense though, to continue to pay as much as you possibly can off the new loan to extinguish it as soon as possible.  In fact, if you can, keep up the old repayments.

After all, in many situations, the interest rate on a debt consolidation home loan is a half to a third of what credit cards charge so the difference in monthly repayments on the combined debt is often massive.

There are many different types of debt consolidation loans on the market from a variety of different institutions and with many different types of features on offer. It’s important then to secure the loan that helps you reduce your debt in the most efficient manner. A Wealth Concerns mortgage broker are experts at finding the right loan deal for your situation.

Contact Us

If you would like to discuss your specific circumstances call us on 1300 700 496 or alternatively text your name and number to 0411 320 962 and we will call you.