Debt consolidation is when you roll all your debts into one low cost loan. You may find that it significantly reduces your monthly bills, particularly if your credit cards are maxed and you are only managing to pay the minimum amount each month.
If you have more than one credit card that is maxed out and you think it is going to take you years to pay off the principal amount then debt consolidation may be an option you could consider.
You could find that you pay off your debt at a more affordable and more predictable rate.
Debt consolidation involves combining all your current debts into one so that you only make one payment each month. Put simply, you take out one loan to pay off many others.
The benefits of debt consolidation will depend on your particular circumstances. They may include being able to negotiate a lower or fixed interest rate and the convenience of a single monthly payment. The downside of debt consolidation is that you may have to pay more than the original debt because you may be paying it off over a longer period of time.
Most importantly you will have more certainty about your payment amount, you will have relieved the stress and you will no longer receive threatening letters and phone calls from debtors. Of course this assumes that you can afford to pay back the money that is owed.
If you concerned that you cannot in fact afford to pay back the debt, then there are other options that are available to you, like debt agreements or bankruptcy.
The option you choose will depend on your level of debt and your capacity to pay the debt (your income).
It is a good idea to seek advice from a debt expert.
GET OUT OF DEBT is a debt service that has helped thousands of Australians get themselves out of debt. Our debt experts know how stressful debt can be and they know that getting rid of debt will make you feel free.
When you ring for a free consultation, our debt experts will listen to you, walk you through the options and help you to make sense of the paperwork. This will assist you to choose a course of action that suits your needs. Their mission is to get you out of debt.
Take the first step to getting your finances under control and your peace of mind back. Contact us today for a free consultation or ring us on 1300 962 252.