The majority of Australian adults have some kind of debt or finance. The most common type of debt is a credit card with many people having multiple cards at the same time. Other forms of debt also include Personal Loans, Student Loans or Car Loans, and can also include finance like Store Cards. With so many different types of debts, each with its own repayment schedule and due dates, it can put a massive strain on a person’s finances, as well as their daily life.
One way Aussies are relieving some of the stress is through debt consolidation. Let’s take a look at a quick guide to refinancing for debt consolidation and how it can help you wrestle back control of your financial situation, so you can breathe a little easier again.
Why Consolidate Your Debts? What Are the Advantages?
It was mentioned in the intro to this article that having two or more debts can put a great strain on someone’s financial situation. This added stress and money problems can also infiltrate every other area of life, making it very hard to relax and simply enjoy each day.
Rather than feeling in control of your finances, too many debts can leave individuals feeling like they’ve lost control of the situation.
Therefore, debt consolidation is about reversing that scenario and getting things back under control again so your finances are more manageable. This then leads to a far more relaxed and enjoyable lifestyle.
There are a number of key advantages and benefits to debt consolidation. Let’s say that you have a total of 3 debts that you want to consolidate into one single debt. If these debts are credit cards, chances are the monthly interest rates on the cards are quite high compared to other forms of finance. A simple example would be consolidating the debt owed on these 3 cards into one Personal Loan with a lower overall interest rate. Immediately, you start to save money on your debts by paying out the balance on each of the 3 cards with your Debt Consolidation Loan.
Debt consolidation is also about simplifying your repayment protocol. Rather than having to remember to make two or more repayments on debts each and every month, you’ll only have one payment to make. Chances are good too, if you get the right type of loan, that your one monthly repayment will be considerably lower than the total repayments were on your individual debts collectively.
Debt consolidation is designed to give you more freedom and room to move, whilst still honouring your obligations of repaying the money you borrowed.
Refinancing For Debt Consolidation
Refinancing for debt consolidation is not particularly difficult. Many Australian lenders are more than happy to help you refinance for debt consolidation. What you’ll want to do though, is take your time working out the best plan for debt consolidation and finding a deal that best suits your particular circumstances. If you’re going to refinance, you’ll want to be sure it ends up to your advantage. After all, that’s the point of debt consolidation.
Take a look at the debts you want to consolidate and add up the total monthly repayments, list the interest rates and associated fees and so on. This will give you the necessary information to refer to when looking at Debt Consolidation Loans. The goal is to refinance, reduce your interest rates and reduce your overall monthly repayment amount as well.
If you have any questions about debt consolidation, either have a chat with your preferred lender or discuss your situation with an accountant or qualified financial advisor.
Having one debt to manage is far better than struggling to repay multiple debts, so debt consolidation is certainly worth serious consideration. Why keep struggling under a mountain of debt when you don’t have to? There are solutions that can ease the financial burden.
Cashify Can Help With a Debt Consolidation Loan
Cashify is a private lender and we’ve helped many everyday Australians get back control of their finances with our loans tailored for debt consolidation. If you need to know more, just get in touch, explain your current circumstances and we can let you know how we can help.
Disclaimer: Please note this content is of general nature only and does not take into account your personal objectives, financial situations or needs. For advice tailored to your financial situation, it is advised that you seek guidance from an accountant or financial advisor. The information contained in this article is correct at the date of publication.