Debt Consolidation

Debt consolidation is the process of applying for and obtaining a loan to put a number of different loans you currently have into a single loan.

It can be an excellent way of better managing multiple debts like a personal loan, car loan and credit cards where you only have one repayment to make each month (or week or fortnight if you would prefer) instead of several payments at different times of the month.

The main attraction for a debt consolidation though is there is also the potential for big savings on your monthly repayment and interest charges.

There are many possible benefits to a Debt Consolidation if they are tailored to you and completed correctly.

Only having one loan can be a lot easier to budget for and handle than many multiple loans with varying due dates and repayment amounts to remember.

The biggest benefit of debt consolidation is the potential to save money. By putting your debts into one loan at a lower interest rate, it may provide big savings on the monthly repayments and cut hundreds or even thousands of dollars from your total repayment. Only having one loan could also reduce the ongoing fees and charges associated with each individual loan saving you even more.

All of these savings can assist in you becoming debt free sooner.

Absolutely, we can review your whole financial situation and give you an honest and fair assessment of whether Debt Consolidation is the best option for you.

Debt consolidation can be a great option if you are juggling multiple debts or if you want to reduce monthly repayments and save money on your total interest bill.

It is important to note though that Debt Consolidation isn’t the best option for everyone, in particular if you are unable to secure a consolidation loan at an interest rate that is lower than the debts you are putting together.

A lot of people choose to consolidate debt into their home loan, but this needs careful consideration as well, as if the loan is taken over the standard 30 years that will significantly increase the amount of interest you might pay on the debt that you consolidate.

To maximise the potential savings of debt consolidation, it is important to aim to have your loan term as short as possible and avoid taking on any other debt during the loan period or using credit cards again that were consolidated.

It is also very important that you understand along with potential savings in interest and monthly repayments, debt consolidation loans can involve potential costs that must be taken into consideration. These may include :

- Lenders application fees : fees charged by a lender to assess and initiate your application and loan. These can range from $0 to $1200 depending on the lender that you are best suited to

- Exit fees on the loans being consolidated : Lenders can charge fees or penalties for paying out loans early. It is important to be mindful of how much these costs are and take them into consideration when working out how much a debt consolidation loan can save you.

- Brokerage Professional Fees : Brokers will often charge a fee in the loan for their professional services and time spent researching the best option for you, you will be told exactly what this fee is at the time of application.

- Government Charges : Government duties and fees may be payable if you choose to secure the debt consolidation loan with a vehicle or your house.

The best way to know if debt consolidation is the best option for you is to enquire or pop in and see your local Paleso office, they can quickly run through your personal financial situation and tell you what your options are and if it will beneficial to you, no obligation or hassle.

Applying through us gives you the upper hand, by having us find the most suitable lender for your financial situation. Why go to your bank and hope you meet whatever guidelines they currently have when you can let us do the shopping around for you to make sure you get the best deal possible.

To set up a loan will have some costs associated with it. All financiers charge an application fee, some have ongoing account-keeping fees, some have early exit fees, and some have no fees at all.

The fees vary between lenders, and also between states. Other costs that you may incur are PPSR fees, GST, Luxury Car Tax, and in some cases a fee from us for obtaining the loan on your behalf.

Before your application is submitted to any lender, we email you with a summary of the fees that would be payable if the loan is approved.

Of course, if you decide not to proceed or are unsuccessful, there is no cost what so ever for the assistance we have provided.

Due to the large volumes of loans we write each month, we have premium access to all the major broker compliant financiers in Australia.

Not only that, our service is second to none, and we do all the research on each individual deal before sending any applications to a financier.

Why not get a no obligation, free quote to find out?

We often help people who have had some trouble in their past. We will always try and offer the most competitive offer possible. If you have had issues such as Defaults, Judgments or Bankruptcy on your credit file, we will access a specialist risk lender.

Risk lenders take into consideration the good things that you are doing now, rather than focusing on the troubles of the past. However, as the finance is deemed to be of higher risk, the interest rates are often higher than ‘Prime’ lending options.

Contact us to see what we can offer. If we can't help we will tell you why, and what you can do to be able to get help in the future.