Financial problems are one of the greatest causes of stress in the lives of everyday Australians. With a world and economy that revolves around money, a lack of cash or disposable income can present major problems.
This kind of stress can place a strain on just about everything, from relationships to work-life and leisure time. Money problems can reach the point where they are all-consuming and often this is due to having too much debt to comfortably handle.
This is where debt consolidation through a Debt Consolidation Loan can really help.
What Does It Really Mean To Consolidate Your Debt?
When you have too many debts, they can become extremely difficult to manage on a set or limited income. This is a problem that’s exacerbated if you lose your job or receive a pay cut for any reason.
While one debt is generally manageable for the majority of people, having two or more debts can be extremely cumbersome from a financial viewpoint.
Debt consolidation is all about rolling two or more debts over into one simple and more manageable debt. In other words, you’ll consolidate several debts into one loan. Many Aussies have a number of credit cards and credit card debt can become crippling. Alleviating the burden of credit card debt is one of the most common reasons people seek debt consolidation.
What Are the Major Advantages of Debt Consolidation?
Let’s now look at a few key ways debt consolidation can be to your advantage and how it can help to ease the financial strain.
Let’s use credit cards for a few example scenarios, as these are very common debts and debts that generally attract high rates of interest as well.
If you have 3 credit cards with an outstanding balance, that’s 3 payments you have to come up with monthly. Sometimes, you might be late on a payment because you forget to pay on time and this can attract yet another charge. If you were to roll over the balance of all 3 cards into a debt consolidation loan, you’ll then only have one monthly payment to remember and take care of.
Depending on the nature of your debts and the deal you get on a Debt Consolidation Loan, you may even be able to reduce the amount you are paying in interest. One of the greatest advantages of a Debt Consolidation Loan is the ability to be able to save money and take the stress off your finances. If you can reduce the amount you’re repaying in interest, that’s a major step towards gaining control of your finances.
A third key advantage of a Debt Consolidation Loan is the possibility of reducing the total monthly repayment amount. If you think about it, one of the biggest money drains when you have two or more debts is having to come up with a certain amount each month to cover the minimum repayment on each of those debts. When you roll over those debts and consolidate them, there’s every chance the minimum monthly payment will end up being a lot less, putting more money back in your pocket, wallet or bank account.
Debt Consolidation Loans Australia
Some lenders offer loans specifically tailored to debt consolidation while other lenders allow you to apply for a Personal Loan with the purpose of paying out existing debts with the funds. There are quite a few options in this country for Debt Consolidation Loans, so take the time to find the right loan for you and your personal circumstances. Based on the key advantages mentioned above, search for a loan that gives you at least one or all of those advantages.
Apply for Debt Consolidation Loans Online
Most Aussie lenders, whether it be the banks or private lenders, will offer you the convenience of online applications for debt consolidation loans and personal loans. This process saves you time and hassle and will also help to speed up the processing time. You can even upload electronic copies of required documents with the loan application.
The Wrap
As you can see, it’s a wise move to consolidate your debts. It can allow you to take control of your finances, relieve financial stress and give you some breathing room.
