3 Reasons to Consolidate Your Debts

by Fox Symes on May 7, 2013

Being trapped by debt is one of the most frustrating yet common experiences faced by many Australians. It doesn’t take much to overextend yourself, yet it often feels like there is simply no light at the end of the tunnel. Fortunately, there are ways that will help you to eradicate your debt and get back in control of your finances, and they’re simpler than you might think. If this sounds like the perfect solution for you, consider these top 3 reasons why you would benefit from debt consolidation.

One Simple Monthly Payment

This is one of the biggest advantages that debt consolidation can offer you. Keeping track of your repayments can be difficult when you have a several different loans and cards, and unfortunately it becomes easy to accidentally miss your due date. This can have severe repercussions for your credit rating in the long run, and must be avoided at all costs. By consolidating all of your unsecured debt into a single loan, you suddenly have one single monthly payment to focus on. This ensures that you always know exactly where you stand with your finances, with only one pay out figure and a simple monthly payment to work on to help you become debt free sooner.

Pay Less Interest

Consolidation not only offers the convenience of a single repayment, it also provides huge savings on interest. Typically, the average person will have a couple of credit cards and maybe one or two personal loans. With all of these sitting at varying rates of interest, it can be hard to try and prioritise your payments, so usually the highest interest loan is the one you try and pay off first.

With a debt consolidation loan, all of your debt is rolled into one easy to manage package with a lower rate of interest than most of your current credit card debt. This allows your money to work for you, and lets your repayments actively start to bring down your balance instead of merely meeting the interest requirements across your loans.

Get Out of Debt for Good

With a lower rate of interest and a simple monthly payment to focus on, you can divert all of your efforts into knocking down your debt as fast as possible. Instead of staying trapped in a frustrating cycle of debt, consolidation gives you the resources to allow you take decisive action and get in control of your finances once more.

If you’re looking for ways to reduce your debt, you’ve already taken the first step towards regaining control over your finances. Admitting that there’s a problem is often the most difficult stage in overcoming your debt. Consolidation is a great way of making your payments achievable, which in turn makes it easier to focus on the long term goal of eliminating your debt for good. The sooner you take action, the sooner you can enjoy the benefits of true financial freedom. Get started today and see why debt consolidation can be the best solution for your situation.

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