| |
Newsroom /
Finance
/
Finance
/
Importance of Quality Debt Consolidation Tips and Advice
Importance of Quality Debt Consolidation Tips and Advice
Debt Consolidation is a very effective way of dealing with your debts. The idea of rolling all your debts into one regular payment with a better rate of interest than you were previously paying is a time tested way of breaking free from debt.
DCS Group,
Hayward St,
United States of America
(prbd.net)
14/02/2012
Stafford, QLD – February 14, 2012. Debt Consolidation is a very effective way of dealing with your debts. The idea of rolling all your debts into one regular payment with a better rate of interest than you were previously paying is a time tested way of breaking free from debt.What people may not know is that there are a couple of ways of consolidating your debt and one approach may be better for your situation than the other.
When most people think of consolidating their debts, they think of a debt consolidation loan. In that situation, you would approach a bank and take out a loan to consolidate your credit cards, personal loans or other debts into one loan repayment. The banks will look at your credit history and ability to repay the debt before agreeing to such a loan and its worth noting that it is becoming more difficult to qualify. Banks are under increasing borrowing pressure and so they’ve raised their approval criteria significantly since the years prior to the GFC. Many are also wary of the “consolidation of debts” as being an attractive reason for a loan as it can indicate that the applicant is a potential credit risk. However this approach was popular for credit card debt consolidation in the past and is an approach people continue to try.
Another way of consolidating your debts is through a Debt Agreement. This is an option for people in genuine debt stress who can’t (or don’t want to) opt for a consolidation loan, however it does carry an extra restriction worth being aware of. Under a Debt Agreement, all of your unsecured debts are rolled into one payment, all the interest is stopped and the debt is reduced to an amount that you can afford. So it can be a much faster way of escaping debt than a consolidation loan. It’s also an option for people with bad credit, who can’t qualify for such a loan. However, the restriction is that a Debt Agreement will be noted on your credit file for a period of 7 years, making it difficult to get into further debt during this time.
These are the two main ways to consolidate your debts and bring them back under control. The option that’s right for you depends on your credit history, current debts and income and it can be worth talking to a debt administrator to help you clarify which approach would be most suitable.
About Us
Debt Mediators is one of Australia’s leading debt relief organizations. We assist people to enter Debt Agreements, Personal Insolvency Agreements, Bankruptcy and Consolidation Loans to deal with their debts.
Contact Us
Mail:
Debt Mediators, PO Box 3074,
Newstead, QLD, 4006
Office Address:
DCS Group, 57 Hayward St,
Stafford, QLD, 4053
Phone: 1300 725 052
Fax: 07 3552 6699
Email: accounts@dcsgroup.com.au
Website: http://www.debtmediators.com.au/
About
Debt Mediators has very friendly and well trained staff members who are ever ready to assist the clients.
|