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Having too much debt can sometimes feel like an insurmountable obstacle in life. You begin to wonder how on earth you reached the point where you’re drowning in bills and debt payments, so much so that you have very little room to breathe and a brighter financial future feels like nothing more than a daydream or fantasy.
For anyone who finds themselves in this unfortunate situation, there is hope; the proverbial light at the end of the tunnel. One solution that’s growing in popularity and helping everyday Aussies crawl out from under their mountain of debt is “debt consolidation”, achieved through taking out a Debt Consolidation Loan.
When it comes to Debt Consolidation Loans, Australia has numerous lenders who are willing to loan you the money to consolidate your debts and get back on top of your finances again and regain control. You can even apply for Debt Consolidation Loans online with most lenders, making the process even more convenient and expedient.
Let’s take a look at a few key ways that a Debt Consolidation Loan can solve your financial problems and enable you to live your life stress-free again.
Trim Your Debts To One Monthly Repayment
One of the frustrating things about having a series of debts is it seems like you’re forever having to pay a bill and you also have to remember to make each debt payment on time every month.
Let’s say you have 3 outstanding debts, whether they be credit cards, personal loans or a combination of different debts. That’s 3 repayments you have to organise each month.
When you take out a Debt Consolidation Loan and roll those 3 debts into one loan, you’ll only have to remember to make the one monthly repayment. This takes off the pressure and relieves the stress levels. It also makes you feel like you’re getting on top of your debt situation. Psychologically, only having to repay one debt feels a lot better than having to repay 3 debts.
Slice Dollars Off Interest Payments
If you’re wise and take your time when you search for a lender and a Debt Consolidation Loan, chances are, you’ll save yourself hundreds or even thousands of dollars in interest payments, depending on your debts and your current rates of interest.
How is this possible?
If you can find a Debt Consolidation Loan with a lower interest rate than what your current debts have, you’ll be slicing dollars off interest payments every single month. The savings could be small or they might be substantial. Either way, if you can save money over the duration of the loan, that’s more money you’ll have in your pocket and the better off you’ll be financially.
Lower Your Monthly Repayment Total
As the idea of debt consolidation is to enable you to get control of your finances and be in a better position, another way debt consolidation can put more cash in your pocket today is by lowering your monthly repayment total.
This is going to vary depending on the terms of your Debt Consolidation Loan and the interest rate, but generally speaking, you’ll save yourself money with a Debt Consolidation Loan.
As a simplistic example, let’s say you currently have a total of 3 outstanding debts with monthly repayments that total $1000. Depending on how you and your lender set up your Debt Consolidation Loan, you might be able to reduce that figure to $600 per month, putting $400 a month back in your hands.
That’s just a basic example to illustrate how it can work, but you get the picture.
Free Yourself From Stress
All of the above benefits of a Debt Consolidation Loan combined will culminate in you having less financial stress and pressure in your life, leaving you free to get on with things and perhaps be able to make even more money to pay off your Debt Consolidation Loan sooner rather than later.
That’s the idea behind debt consolidation: To allow you to be able to breathe easy again.
Talk to your lender today about consolidating your debt. You’ll soon discover that it could be one of the best financial decisions you’ll make this year.