Consolidating Your Debts is A Solution To Multiple Debt Problems
A Solution for Multiple Debt Problems
Are your debts getting out of control? Are you unable to manage your multiple debts? If your debt is giving you sleepless nights, it is important to seek help quickly. Remember, ignoring your debts won’t make them go away. It will only make things worse.
If you are in debt, here is a list of questions you should ask yourself:
Question 1
Are you finding it difficult to meet your monthly repayments?
Answer
Consider rolling all your multiple debts into one monthly repayment. It will:
Reduce the amount you pay each month; and
Make your debts easier to manage.
Question 2
Do you have multiple debts i.e. mortgage loan, credit cards and store cards?
Answer
Multiple debts means:
Paying multiple sets of interest; and
Finding it hard to stay on top of your multiple debts.
So, consider consolidating your debt because it will:
Enable you to keep track of your debts.
Enable you to pay down your multiple debts.
Question 3
Do you have negative listings and defaults listed in your credit file?
Answer
If you do have a bad credit history, you will find that your loan options may be limited with prime lenders however there are Non Conforming Lenders that specialise in Debt Consolidation with Bad Credit.
Question 4
Do your multiple debts have high interest rates?
Answer
Consolidating your debt should enable you to get a loan with a lower interest rate.
Question 5
Do you have equity in your home?
Answer
If you do have equity in your home, you may be able to use it to pay down all your multiple debts.
Question 6
When is it the best time to consolidate your multiple debts?
Answer
You can consolidate your multiple debts:
Whenever you consider you are ready.
When you are unable to manage your multiple debts anymore.
Before you Borrow
If you are thinking of borrowing money, here is a list of steps you should consider and which may help you:
Step 1
Use a budget planner to work out what you are spending now.
Step 2
Use a borrowing power calculator to calculate:
How much you can afford to borrow; and
If you can afford the repayments.
Step 3
If you decide to borrow, shop around for the best deal and take time to compare:
Interest rates;
Product features on offer; and
Fees and charges.
Step 4
Know who you are dealing with. This means anyone engaging in credit activities (e.g. anyone providing credit or providing credit assistance to you) must give you:
A copy of the “Credit Guide”; and
A “Statement of Credit Assistance “, with the required information listed such as their Australian Credit license (ACL) number, fees and details of your right to complain.
Useful Tip
Avoid seeking help from someone who makes unrealistic promises about getting you out of debts or who advertises that they can help you, no matter how much you owe. Remember to choose a reputed, qualified and experienced Mortgage Broker who will go the extra mile in solving your problem.
