Tuesday, March 26, 2013

Do I Qualify for a Debt Consolidation Loan?

Being in debt is one of the greatest causes of stress in everyday life. The feelings of helplessness and frustration can be overwhelming, and it can seem like there’s no way out. Luckily, there are a range of solutions for anyone who is experiencing problems with debt. One of the most popular options is to consolidate your debt. If you’re struggling with debt, you might be wondering if you qualify for a debt consolidation loan, so here’s some further information.

Why Should I Consolidate?

Debt consolidation provides a simpler solution to managing what you owe. By rolling all of your debt into one loan, you only have to worry about dealing with one creditor. The one monthly payment makes it easier to keep track of exactly how much you are paying per month, and keep the payments up to date.
By focusing on one loan, you will also be able to increase your repayments when it suits you, and know that it is all working to reduce your total level of debt. This is far more efficient than trying to calculate which loan has the highest interest and attempting to pay it off first, sometimes to the detriment of your other debts. In addition, the interest rate on your consolidation loan is likely to be lower than that of any credit cards you are currently trying to pay off.

What Kind of Debt Qualifies for a Consolidation Loan?

You can consider a debt consolidation loan for all of your unsecured personal loans, store cards and credit cards. You will then be left with one simple monthly repayment at a low rate of interest, taking the stress out of organising multiple payments at varying rates of interest. One loan also means only one set of fees, which can make a significant difference in the long term.

What Would Work Against Me?

There are a number of factors that a financial institution will take into account when they assess your application for a consolidation loan. Unfortunately, you are unlikely to qualify if you have any history of late payments, are not in regular employment or have a bad credit record. This can make it difficult for people who are self-employed or work from home to qualify for a consolidation loan. It’s also a challenge for anyone who has ever had trouble meeting their payment deadlines, no matter how temporary the situation may have been. If you are in default on any of your other loan payments, or have been bankrupt in the last ten years, it is likely that you will not qualify for this kind of loan.

If you are refused a debt consolidation loan, or simply want some more advice on how you should proceed, consult a professional provider of debt solutions such as Fox Symes. As the number one provider of debt consolidation solutions within Australia, they are able to help you regain control of your finances for good.

For more information on how you can eradicate your debt, receive budgeting assistance and information on a range of important topics, visit http://www.foxsymes.com.au and see why they are Australia’s most trusted debt solutions specialists. Fox Symes is committed to helping struggling Australians eradicate their debt for good.
Written by Emma Jane

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