Consolidate your debt to a lower interest rate and make repayments more manageable month-to-month.
Make your dreams a reality with a fixed rate HSBC Personal Loan. Flexible loan terms from 1 to 5 years. Borrow between $5,000 and $50,000.
Borrow between $4,000 and $50,000 (conditions apply). Flexible loan terms from 1 to 7 years. You can refinance an Australian, non-Westpac Personal Loan, credit card or store card.
Consolidate debt or buy what you need. Choose between a fixed rate or variable rate and borrow between $3,000 and $40,000.
Choose between a fixed rate or variable rate. Consolidate debts to a single loan, with one rate, regular repayment and set of fees.
If you have a number of personal loans, credit cards and other debts, it can often feel like you are overwhelmed with debt. With so many different interest rates, fees and repayment due dates to think about, it can be all too easy to get snowed under.
When money gets tight, and you are unable to make your repayments, it can feel like you have to decide which ones will get your attention this month – and which will have to wait until more money comes in. But, unpaid repayments can rack up extra interest and fees, and may result in black marks on your credit file.
The solution? For some folks struggling with multiple debts, debt consolidation can be the answer to their problems. Allowing them to roll their debts into one loan, debt consolidation can help to reduce stress, while making repayments more manageable month-to-month.
So, is debt consolidation right for you? Let’s take a closer look at debt consolidation, so you can make the right decision for your situation.
Debt consolidation can either involve a debt consolidation loan that borrowers seek out themselves, or a debt consolidation service, which does the work of creating a debt consolidation program for borrowers in trouble.
A debt consolidation loan can often be a popular option for people who have multiple debts, such as personal loans, credit cards, store cards and other types of loans. A debt consolidation loan allows the borrower to pay off all their loans, so they only have one loan and one repayment to worry about.
By clearing their other debts, borrowers may feel reduced pressure, especially if creditors have been hassling them to make repayments. It may also feel less stressful having just one repayment each month, instead of multiple repayment amounts on different dates, some of which they may have fallen behind on.
With the right debt consolidation loan, borrowers can find a monthly repayment schedule they can afford. As long as they make repayments on time, this may help to rebuild their credit for the future – instead of letting repayments slide, which could result in credit problems later on down the line.
For many borrowers struggling with multiple debt repayments, debt consolidation can be a relief. But that doesn’t mean it’s the right option for everyone. If you’re thinking about applying for debt consolidation, it’s important to understand what you’re getting into – and whether it will actually improve the situation you are in.
However, as we said, debt consolidation is not for everyone – and it doesn’t always provide the solution borrowers need. If you’re still weighing up applying for a debt consolidation loan, check out the pros and cons of debt consolidation, while taking into account the best way to deal with debt consolidation options.
To help you weigh up the various advantages and disadvantages of debt consolidation, here are some of the pros and cons of applying for a debt consolidation loan.
As with any financial product, when applying for a debt consolidation loan, it’s best to understand what you’re getting into – before you sign on that dotted line.