Consolidating debt is something that many Australians with more than one outstanding debt or loan should seriously consider. When it comes to Debt Consolidation Loans, Australia has numerous lenders all vying to assist you. The popularity of merging debts into one single loan is increasing all the time as more and more people start to see the benefits of debt consolidation.
To clarify just how consolidating loans and credit card debt can help turn your life around, we’ll be covering some key points in this article.
#1 – Having Just One Payment Is Far More Manageable
After you have consolidated your debts with a Debt Consolidation Loan, all you’ll have to do is remember to pay one single payment, rather than having to juggle multiple repayments every month, and likely all on different dates.
With only one repayment to remember, the chances of you forgetting to make the payment and incurring a possible late fee are minimised. When you have multiple repayments to remember, you increase the possibility of paying at least one of them late. This can also ultimately affect your credit score, if repayments are late on a regular basis.
Merging multiple debts into one single debt is far more manageable and simplified. It just makes sense.
#2 – Reducing the Number of Your Debts Can Reduce the Interest You Pay
The interest rates on loans and credit cards can vary greatly, but chances are high that if you do consolidate your debts into one simple loan, you’ll be able to reduce the overall amount of interest you’re paying.
A prime example is credit card debt, something so many Australians have and struggle to get on top of. Let’s say you have 3 credit cards, but you really want to pay out the balance on all of those cards. Credit card interest rates are notoriously high compared to some other forms of finance. If you pay out the balance on all 3 cards with a Debt Consolidation Loan, you’ll likely reduce your interest payable quite significantly over a period of time.
By the time you repay your Debt Consolidation Loan in full, you may have saved yourself thousands of dollars in interest by getting rid of those credit cards.
#3 – Potentially Reduce the Amount Payable Per Month
This point will depend on how good a deal you manage to get on your Debt Consolidation Loan, as well as the terms of the loan. Obviously, the faster you can repay the loan, the less interest you’ll have to pay, but the higher the monthly repayment will be.
It’s worth taking some time to play around with the figures and see if you can come up with terms that offer you an attractive and affordable monthly repayment that still saves you money in the long term.
#4 – You’ll Relieve Your Financial Burden
Even though you’ll technically still owe the money, the mere fact that you’ve simplified your debts, reduced the amount of interest you’ll pay and only have to come up with one repayment per month will lighten your financial burden.
You’ll feel as if you can breathe again and have more control over your financial situation. This can be a huge stress relief, and what price can you put on peace of mind?
Some of the greatest worries most people go through are financial in nature, so the more you can do to relieve stress in this area, the better it will be for your mental and physical health.
#5 – You Can Apply for a Debt Consolidation Loan Online
For the sake of convenience, the majority of lenders will allow you to apply for a Debt Consolidation Loan online. This means you can fill out the application at any time, from the comfort of your own home.
To further simplify the application process, be sure to have all the required supporting documentation ready to upload with your application, so there are no delays in processing.
Being able to apply online is not only convenient, but it saves a lot of time as well; meaning you could have your loan approved even sooner.
The Takeaway
Consolidating your debt can be a smart financial move. It will free up your money and reduce the financial burdens in your life. That can only be a good thing.