Debt Consolidation Loans
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Drowning in debt?
Getting into debt is easy. Learning how to manage your debt (and ultimately pull yourself back out of debt) is a lot harder! If you have lost control of your debts, then debt consolidation may be right for you.
Are you:
- unable to keep up with your bill repayments?
- afraid to answer the phone, thinking it may be yet another creditor chasing you?
- being visited by debt collectors?
- worried you may lose your house or car?
- considering bankruptcy?
- bogged down in debt?
- wanting a more manageable debt, with a lower interest rate?
…an expert consultant maybe able to help you lower your payments with a debt consolidation loan – they have helped thousands before you!
Apply now and have a friendly consultant contact you.
Debt consolidation entails the taking out of a single loan to pay off many other loans. This is often done to secure a lower interest rate, or for the convenience of servicing only one loan rather than many.
Debt consolidation can simply be in the form of a number of unsecured loans being consolidated into another unsecured loan. In many cases, however, debt consolidation consists of a loan secured with an asset (usually a house or apartment) which serves as collateral. This type of consolidation allows all debts to be rolled into your mortgage, with the collateralisation allowing the lender to offer a more favourable interest rate.
The following are some examples of debt consolidation and how debt consolidation loans can be beneficial for people who are struggling with debt stress:
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Example 1: Secured Loan
Prior to debt consolidation Matt had 5 different loans that he was paying back each month.
| Loan Type | Amount Owed | Interest Rate | Monthly Repayments |
|---|---|---|---|
| Home Loan | $300,000 | 7.40% | $2,079.18 |
| Car Loan | $30,000 | 10.00% | $637.41 |
| Personal Loan | $20,000 | 14.90% | $384.82 |
| Credit Card 1 | $10,000 | 17.50% | $501 |
| Credit Card 2 | $5,000 | 14.50% | $240 |
| TOTAL | $365,000.00 | - | $3,842.41 |
After getting a debt consolidation loan, Matt’s monthly payments are reduced from $3,842.41 per month to $2,652.73 per month. Saving him $1,189.68 per month:
| Loan Type | Amount Owed | Interest Rate | Monthly Repayments |
|---|---|---|---|
| Home Loan | $365,000.00 | 7.90% | $2,652.73 |
| Monthly savings | - | - | $1,189.68 |
Example 2: Unsecured Loan
Prior to debt consolidation Dave had 5 different loans that he was paying back each month.
| Loan Type | Amount Owed | Interest Rate | Monthly Repayments |
|---|---|---|---|
| Car Loan | $35,000 | 14.00% | $814.39 |
| Personal Loan | $15,000 | 14.90% | $288.62 |
| Credit Card 1 | $15,000 | 15.50% | $760 |
| Credit Card 2 | $8,000 | 14.50% | $380 |
| Credit Card 3 | $3,000 | 17.50% | $160 |
| TOTAL | $76,000.00 | - | $2,403.01 |
After getting a debt consolidation loan, Dave’s monthly payments are reduced from $2,403.01 per month to $1,462.30 per month. Saving him $940.71 per month:
| Loan Type | Amount Owed | Interest Rate | Monthly Repayments |
|---|---|---|---|
| Personal Loan | $76,000.00 | 14.90% | $1,462.30 |
| Monthly savings | - | - | $940.71 |
Like what you are seeing? Apply now for a debt consolidation loan.