News

Are you currently burdened with a significant amount of high-interest debt? Do you make consistent payments towards your debt? Are you worried that repaying your debt – at your current rate – may take many months or years? If you have answered yes to any of these questions, debt consolidation might be exactly what you need. 

In this article you will be able to learn more about:

  • What is Debt Consolidation? 
  • The Benefits of Debt Consolidation 
  • Tips on How to Consolidate Your Debt 

What Is Debt Consolidation?

In the simplest of terms, debt consolidation can be defined as the process of combining two or more debts – including credit cards, store cards and even private mortgages – into a single larger debt. This strategy is perfectly suited to consumers that have accumulated a significant amount of high-interest debt. 

To find out more about the benefits of debt consolidation, as well as some tips on how to go about it, please read on below. 

Debt Consolidation - Definition, Benefits & Tips

Benefits Of Debt Consolidation 

Rolling all your debt into one large debt comes with a few important advantages including: 

  • Simpler Repayment Schedule: One of the main advantages of rolling all your debts into one comes in the form of a simpler repayment schedule. With debt consolidation, you will no longer have to make different payments towards different loans on different dates. You will only have to make one single payment towards one loan each month. This can also help to protect your credit score in the event you become overwhelmed with all the various repayments and miss one along the way.
  • Fixed Repayment Schedule: Since you will only be dealing with one fixed loan, you will have a better chance of knowing when the loan will be completely paid off. As opposed to the uncertainty of repaying a credit card debt that is constantly fluctuating. 
  • Faster Debt Repayment: Debt consolidation comes with a fixed loan repayment schedule. Through proper planning, you can be able to pay off significant credit card debts sooner by making fixed payments each month with a set commencement and completion date. 
  • Lower Fees And Interest Rates: Debt consolidation also helps you save money by reducing fees and interest rates. Depending on your credit rating, you can get a lower interest rate on your debt consolidation loan. Furthermore, since you will be repaying a single debt, you may also end up avoiding a raft of fees. 
Debt Consolidation - Definition, Benefits & Tips

Debt Consolidation Tips 

If you are convinced that debt consolidation is the right move for you, use the following tips to find the right debt consolidation loan. 

  • Calculate Your Total Debt: First and foremost, you will need to start by calculating the total amount of debt you intend to consolidate. You need to have an accurate idea of what you owe, before taking out a loan that covers it all. Remember to factor in any origination fees taken out of the loan amount, when calculating the total amount you owe. 
  • Research Different Lenders: It is always worthwhile for you to shop around for the best debt consolidation loan product before making a final decision. With that in mind, take the time to research different debt consolidation products offered by different lenders. You can easily do this by checking out different lenders online. Your main goal here is to find a lender/product that offers the best repayment terms.  
  • Apply: Once you have all the information you need to make a decision, you can apply for a debt consolidation loan. It is also important for you to reorganise your finances at this point – after you have successfully consolidated your debt. 

Final Thoughts

Paying off a significant amount of high-interest debt can take a long time, and cost more due to the accumulation of interest. Debt consolidation might be exactly what you need to regain control over the repayments of your outstanding debts, and reorganise your finances. 

At New World Funding, we understand that banks aren’t always the best places to turn to when it comes to debt consolidation. That is why you can turn to us. We’ll collaborate with you to ensure our loans are tailored to suit your specific needs. We are committed to providing a unique experience for each and every client.

Please call us today on 1300 974 985 or leave us a message and we will get back to you within 24 hours.

 

Leave a Reply

Your email address will not be published.