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how a debt consolidation loan can help you pay less per month 

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If you’re someone who has multiple payments to make each month on various credit cards, personal loans, or buy-now-pay-later facilities like AfterPay, you’ll appreciate that it can sometimes feel like a never-ending story.  

Payment after payment, and yet you feel like you’re getting nowhere.

That’s where debt consolidation comes in.

Below we’ll talk about why many Australians choose to consolidate their debts, what can be rolled into a debt consolidation loan, and how Alegra Financial Solutions can assist. 

Why do debt consolidation?

If you have debts through multiple facilities such as credit cards, personal loans and the like, although your repayments may seem quite small individually, when you add them altogether it’s actually quite a lot. 

Not to mention that many of these facilities have extremely high interest rates and/or penalties for late payments.  Take your credit card for example, according to RBA data the average credit card interest rate in Australia is currently 18.05%.

Many Australians are also only making the minimum monthly repayment on these facilities, which means they are possibly paying interest-only.  By consolidating your debts into one, easy-to-manage monthly payment, you will be paying both principal and interest, which means that the loan actually gets finalized over time.

 Another added benefit is that a debt consolidation loan with a lower interest rate can mean you are in fact paying less each month, which has the added benefit that you are less likely to default on your loan.

 

What types of debts can I consolidate?

You may be wondering what types of debts you can roll into one debt consolidation loan.  This may vary depending on the lender, but generally speaking it could include:

  • Personal loans
  • Credit cards
  • Store cards
  • Buy now pay later facilities like Afterpay, Zip Pay, Klarna, Humm, Latitude Pay
  • Tax debts
  • And more!

 

How can I get a debt consolidation loan?

It is important that we try to tackle this before it gets out of hand and you fall behind on repayments, otherwise it can become a far more difficult process.

To check your eligibility, we start by doing a preliminary assessment with you, checking your credit file, and reviewing the current loan balances to see the opportunity for a debt consolidation loan.

All that you need to have prepared for us are 2 of your most recent pay slips from your employer, or your most recent tax return if you’re self-employed.  Ideally you’ll also have a clear idea of your current debt situation through the collection of things like credit card statements, AfterPay logins and the like.

Are you ready to simplify your debts?

If you would like to discuss a debt consolidation loan to help your current situation, please get in contact with the Alegra Financial Solutions team. 

We are local, financing experts who can walk you through the options available to you, helping with the full process from eligibility through to application and approval.