If you’re facing financial difficulties and struggling with multiple bills, then consolidating your debts might be the best option. It’s the process of streamlining different types of debt into one monthly repayment. By forcing all your fees and charges to be paid together, you can see a clearer picture of how and when to pay off your debt.
Ways to consolidate your debt include getting a 0% interest balance-transfer credit card or taking out fixed-rate debt consolidation loans to help with your repayment amount.
Dealing with debt is a stressful experience, but consolidating your fees, charges, and types of loans in one payment is a surefire way to take back control of your financial situation.
Let’s get to the following commonly asked questions:
There are pros and cons to all financial advice, and debt consolidation is no different. While it does help to streamline your personal debts, here are some downsides.
All debt consolidation options available to you won’t harm your credit scoring in the long term. In fact, it’ll most likely benefit your score, but only if you stick to your loan repayment plans. After loan approval, you may see a temporary dip in your credit score because of a hard credit check by your loan and credit card company, but this will quickly be rectified.
Going with a debt consolidation loan option could have the following benefits for your score:
Credit card debt can cause a serious mental health decline, and finding a debt solution through consolidation is a beneficial way to not only save money but rectify bad credit and relieve stress. However, it’s only worth consolidating your debts if you're confident that you can make the monthly payments. If not, it could make your financial situation worse.
It’s worth consolidating your debts if:
If you’re seeking more financial assistance, get in touch with financial advisors for professional advice.
If you’re facing financial difficulty, you could consolidate debt into one account, but it depends on your personal situation. If you’re thinking of managing your debts with a credit card balance transfer, make sure to apply for a 0% APR credit card. Alternatively, if you’re struggling to make minimum payments, applying for a loan online will reduce your monthly payments and provide short-term debt relief.
Debt management can feel overwhelming, but a consolidation method streamlines your loans and finance options into one, easy-to-manage account. Before agreeing to a debt consolidation agreement, make sure you can meet the payment due dates and make regular payments. If not, we’d recommend talking through your options in financial counselling or alternatively contacting Australia’s national debt helpline.
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Disclaimer: The author is not a financial advisor and the information provided is general in nature and was prepared for information purposes only. This article should not be considered to constitute financial advice. Accordingly, reliance should not be placed on this article as the basis for making an investment, financial or other decision. This information does not take into account your investment objectives, particular needs or financial situation.