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Debt has
become very easy to get into, and you
may find you'll be offered extra
credit on your credit card or an
extended home loan, sometimes even
without asking. As a result, it's also
easier to over-extend yourself. On top
of that, managing your payments for
credit cards, store cards, personal
loans and a home loan, all charging
different interest rates, can become a
complicated business.
How
will debt consolidation benefit me?
A debt consolidation loan replaces
multiple loans (such as credit card
debt, personal loan debt and other
unsecured debt) with a single personal
loan usually at a reduced rate of
interest.
A debt consolidation loan eliminates
the need to make multiple repayments
for unsecured debts. It ties up
multiple loan repayments into one
affordable monthly amount, allowing
you to meet your debt obligations
while minimising your monthly
outgoings.
You may currently have two or more
personal loans or credit cards with
outstanding balances totaling $12,000.
The minimum repayment for all these
debts is around $500 per month.
By consolidating all these debts into
a single loan over a longer term, the
amount you may have to repay could be
reduced to less than $330 per month.
With a debt consolidation loan it is
usually possible to make payments
weekly, fortnightly or monthly. The
length of the debt consolidation loan
is set for a repayment schedule which
meets your needs.
You may be able to choose between 12
months and 7 years depending on the
purpose and the amount of your
consolidation loan.
A debt
consolidation loan can help simplify
your finances and save you money. Use
this
Loan Consolidation Calculator for
a guide to your savings.
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