Everything You Need to Know about Debt Consolidation

Does getting out of debt seem like an insurmountable task? Are you over dealing with creditors? If you’re struggling with your debts you are not alone. Many Australians struggle to manage one or multiple debts every year. No matter your situation, there is always a solution. If you’re one of the unlucky Australians who is struggling with debt then debt consolidation might be right for you.

What Is Debt Consolidation

When you’ve got a whole range of debts it can be hard to know where to start. Debt consolidation simplifies your debt for you by combining all your debts into a single low-interest loan. Debt consolidation makes your debt less scary and more manageable, giving you one easy monthly payment that will gradually reduce your debt.

When Should I Consider Debt Consolidation?

If you’re struggling to meet your payments on bills and invoices then it’s time to consider debt consolidation. There’s no shame in debt consolidation. It’s simply a structured way to make your payments and save money in the long term.

What Types of People Consolidate Their Debts?

You might think that reckless spenders are the type of people who consolidate their debts. In reality, debt consolidation is for everyday people. Most of the people who walk through their mortgage broker’s doors are simply Mums and Dads who are looking for great solutions.

The Extra Benefits of Debt Consolidation

Debt consolidation isn’t just a less stressful, more manageable solution to debt management. There are a range of bonus benefits that come with the choice to consolidate your debt.

1. A Convenient Monthly Payment

One of the biggest problems with debt is that it’s everywhere. Many individuals have multiple credit cards and accounts with balances on each of them. By using a debt consolidation loan, you will be able to consolidate everything into one single source. Instead of having to worry about multiple payments and multiple deadlines, you can simply make one payment every month towards your debt. This will allow you to focus in on the debt and get it paid off quicker. 

2. Stop Debt in its Tracks

Managing debt is about more than just knowing when your bills are due, it’s about making sure that you don’t accumulate more debt. Consolidating all of your debts together gives you confidence in your money management skills and stops you from taking out further loans and accumulating further debts.

3.  Lower Interest rate

Match the peace of mind you get from a single, consolidated debt with a lower interest rate. Debt consolidation means a lower rate on a single loan rather than higher interest rates on multiple loans. Debt consolidation loans typically have lower interest rates than the various credit cards and hire purchases that you might be juggling. With a lower interest rate your repayments will go towards paying off your actual debt, rather than paying for the rates themselves, saving you a significant amount of money in the long term.

A great mortgage broker is one of your most useful weapons when it comes to taking control of your debt. To take control of your debt in Adelaide and to get all the facts about debt consolidation, get in touch with the team at AAA Mortgage Solutions. Call us today on 08 8182 5555 for instant debt relief.