If you are trapped in a cycle of debt then the dream of paying a lower rate of interest is appealing.
Debt consolidation, in agreement with your creditors and in conjunction with an associate finance broker, takes all your debt such as credit card balances, overdrafts, store cards and similar, repays them with a single low interest loan – that’s known as debt consolidation. With just one regular payment to make, it is possible to halve the interest liability immediately.
However, debt consolidation is not a one-size-fits-all solution and there are four other options which may be available to you – and may be better for you.
Take advantage of a FREE consultation with an independent debt solutions specialist at Capital Debt Solutions. Inside 10 minutes, you will know if it will benefit you.
When is debt resolution appropriate or inappropriate?
Many Australians fall into the trap of spending more than they earn. Perhaps you have as well. The extra borrowing needed seemed so low at the time. Unfortunately, it does not stop there. The simplicity lures you into the trap of repeating it, until its over your head.
Your debt expert at Capital Debt Solutions will ask you about self-discipline. It is essential to this scheme. After all, when all your current debt payments have reduced, it would be unwise reverting to the old you.
Another point to consider is your work future. If income or work looks uncertain then debt consolidation might not be the best choice for you. You need to know that your income can deal with the new loan in terms of the amount and the time to repay it.
So there are three good points:
- You make one regular payment
- The lower interest rate is attractive. Just a few percentage points saving on the rate means that you save money.
- You might qualify for a lower repayment on the consolidation loan.
Now consider the other side of debt relief:
- Because the loan paid is off your card balances, it’s simple to slip back into the old you. Beware, as it is easy to get into even more debt.
- Remember – you might lose an asset if you default on a loan, such as your home or the car. This is where self-discipline is essential.
- The debt might take longer to clear. It depends on the terms of the loan used.
This is why we say it’s not a “fits-all debt solution”. Just because one kind of debt relief is inappropriate, it does not mean the end of the road.
Your 10-minute FREE consultation with Capital Debt Solutions will highlight other methods of dealing with your debt. Contact us now either by Clicking here to message us or call now on 1300 107 or 155 07 5474 4450. Every month we help Australians just like you.
The ugly side of debt.
Debt is stressful and can cause relationship problems within a family. So do not brush it away. Why suffer the constant harassment of letter from lenders or calls from debt collectors when help and advice is available.
Take action and make this the day you decide on a solution. Debt affects your everyday life.
Here are 3 things you can do NOW-
- Recognise the problem
- Contact Capital Debt Solutions today
- Start a plan to resolve your debt problem
Make contact with us – today.
Start today, and talk to our debt solutions specialist. We work with you and your creditors to deal with the problem. Let us jointly build you a brighter financial future.
Make today the day you take the hassle of out of your debt problem.
Ethical, independent, trusted and recommended by more than many Australians.