If you have been having problems due to the debt accumulated on more than one credit card and/or personal loan, there is good news for you. A debt consolidation loan can be the key out to all those problems you may be facing. It is fantastic news because you can pay your loan in monthly instalments, with an interest rate that is generally much lower than the interest rate attached to your credit cards.
Debt consolidation is an innovative approach if you want to refinance several loans, in which each of them has different interest rates, payment methods, and deadlines.
What is Debt Consolidation?
A debt consolidation loan is an intelligent step for consumers who are taken aback by the enormous credit card debt accumulated over the months. It reduces the number of bills by cutting the interest rate on debts, thereby lowering your monthly outgoings.
With this sensible solution, loans and debts in Australia with high-interest rates can be turned into a single payment. A debt consolidation loan Perth, Australia, will help you optimize your resources to pay bills and potentially for you to be financially free faster.
When you want to think about excellent financial strategies, debt consolidation cannot be left out of those packages. This is because consumers can now tackle debts of any kind. In Australia, debt consolidation combines several obligations into just one debt that is payable only when having a debt management plan or a consolidation loan.
How does debt consolidation work in Australia?
This relief option exacerbates the loopholes that debtors in Australia have to tackle on a monthly basis when they try to be at the same pace with the massive loans and several ultimatums from multiple lenders.
Usually, all these debts will have different interest rates, payable amounts, and deadlines, making it difficult to manage your money. But with a personal loan repayment calculator, you can work out the repayments of the bills as a single loan.
Customers can reach out to their respective lenders in Perth, Australia and tell them about their financial situation. Not all lenders are able to facilitate this plan. But when you reach out to debt consolidation companies, they will help address your situation with their payment plan and what loan is available for your situation. They will use their algorithms to help you sum up your debts into a single debt; this decision will help you make regular payments in due time, and in no time, you have paid it off. The payment plan will help you have one single rate, thereby making it easy to address your bills faster, easier with less paperwork.
Here at Nu-Age Loans we can also help in tackling the mess of several debts. Contact us when you want to go for debt management or consolidation loans.
Risks of Using Debt Consolidation
When you want to carry out this debt consolidation journey, risks are an integral part that you cannot avoid but can only mitigate. These risks need your attention, so you know when it applies to your situation.
It takes time to pay.
Most unsecured loans have nothing to do with assets under debt consolidation and can take longer to pay than expected; therefore, the repayment plan could be much more than expected in the long run.
Fees, charges, and interest rates
Customers taking debt consolidation loans Perth, Australia, should always check the fees, charges, and interest rates that are attached when they want to consider the management plan. Because sometimes it might turn out to be much more expensive than the amount of the multiple debts all put together. At Nu-Age Loans we give you several options that are available to you and you can choose if there is a loan that is right for you.
Unsecured loans into a secured loan
Customers have to be careful when it comes to matters like this, as the previously unsecured bills are now a secured loan. The asset you have used as collateral is the one receiving the significant risk, so you should be careful, especially if you don’t make your repayments.
Benefits of Debt Consolidation
Customers applying for debt consolidation have numerous advantages like maximized budget control and much more in-depth knowledge of when they will be to clear the loopholes.
Another significant benefit of consolidation is that several debts turn into one debt and one outgoing payment each week, fortnight or month. Now you will have the opportunity to reduce the total interest rate you once had. The rate of credit cards can be over 20%, while consolidation loans can be from as low as 5.99% saving you hundreds, or even thousands, over the term of the loan.
Debt consolidation in Australia also reduces interest charges. You could be shocked if you examine the interest incurred on your existing credit card bills. You’ll save money when you take a debt consolidation loan in Perth because the interest rate is generally substantially lower.
By consolidating your loans into a single loan, you may simply lower your monthly payment and save up some cash. All these benefits can eventually lead to wealth creation for the future. This is because if you devote a significant amount of your earnings on repaying vehicle debts, bank loans, or credit cards, it will continue to affect your plans for the future, for example, your retirement savings.
Of course, taking personal loans are important at certain times. However, you must remember that these debts are non-deductible. Furthermore, using your personal loan you can purchase such goods as cars, boats, a holiday, sports equipment, medical expenses, education expenses, jet skis – the list goes on.
With debt consolidation loans, you can reduce your interest rates, cut down your monthly instalments, and free up your money so you can start investing for tomorrow.
Is Debt Consolidation the Next Step for Me?
Debt consolidation can be a massive financial step that shouldn’t be made without thinking deeply. Customers must be able to check their current financial situation and see which option can be much appropriate. That’s why we are here to help you at Nu-Age Loans. We check the budget structure of our clients and determine which strategy will be good for them. Contact us today and find out how we can help you