How a Debt Consolidation Loan Can Change Your Life

By July 10, 2020 October 18th, 2022 Personal Loan

Out of everything in life, one of the greatest causes of stress across the world is money (or a lack of it). Not making enough money each month is bad enough, but add in one or more debts that have to be paid and those stress levels increase exponentially.

Mounting debts and a lack of income are a volatile combination that can leave a person feeling miserable and in a state of hopelessness. It doesn’t have to be that way, though.

A Debt Consolidation Loan can help and in this post, you’ll discover just how consolidating your debt can reduce those stress levels, free up your finances and allow you to take back control of your life.

What Are the Uses of a Debt Consolidation Loan?

The primary purpose of a Debt Consolidation Loan is to make your debts more manageable. In other words, you combine more than one of your current debts into a single loan, thus reducing the interest you pay every month and also reducing the minimum monthly repayments.

These two factors alone are a huge weight off the shoulders of someone who feels like they’re drowning in debt and is struggling to swim against the financial current. With a Debt Consolidation Loan, while the amount you owe in principal might technically remain the same because you have merged two or more loans or debts into one single loan, it will reduce the interest you pay on top of that principal.

This is especially true if you have a number of credit cards and merge those debts into a Personal Loan instead. Credit cards are notorious for attracting high rates of interest compared to other forms of finance, so consolidating them by getting a loan that pays out the balance on those cards makes perfect financial sense.

For the sake of a simplistic example, let’s say you have 3 credit cards that total $10,000 owing on them, and let’s assume that the average interest rate on all 3 cards is 18%. If you can arrange a Personal Loan for $10K to pay out the balance on all 3 cards and the interest rate of that loan is lower, you’ll save money on interest as well as reduce your monthly repayments. You’ll only have to concern yourself with paying one debt monthly instead of 3, and that repayment will be lower and far more manageable.

It’s the principal reason why consolidation loans in Australia are so popular and why finance companies and banks advertise them so heavily.

Debt Consolidation Can Change Your Life

Everything we need and do in the modern world costs money somewhere along the line. No one can survive without it. That’s why financial problems can create so much stress. Money worries can lead to arguments with loved ones, put added pressure on a relationship and even depression.

While that all sounds like a bit of a downer, there are ways to get your head above water and one of the best tactics to reduce the financial strain on you and your family is through debt consolidation.

Getting your finances under control literally can turn your life around in many ways. Reduce the money stress and see how everything else in your life suddenly looks that much brighter. Instead of being stressed and depressed, you can get out there and enjoy life again.

That’s the way life’s meant to be, feeling free and having fun, not drowning in a pool of debt that you can’t cover month to month.

Where Can I Get a Debt Consolidation Loan?

Debt Consolidation Loans are available through most banks and private lenders. It’s a matter of shopping around to find a deal and terms that suit your circumstances.

Here at Cashify, we specialise in Debt Consolidation Loans. One competitive advantage we offer is speed. We’ll process your application and make a decision in a very quick time. Once an application is approved and signed, you’ll have the cash in your account that same day or the very next business day.

Check out our website for the latest interest rates and terms on our Debt Consolidation Loans, which range from as little as $500 up to $25,000.

Give us a call today and get on top of your finances.

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.

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