Over the years, Loantec has helped thousands of clients take control of their finances and get their debt under control. One of our favourite ways of helping clients manage their debt is with a debt consolidation. By combining all your loans, bills and even credit cards into a single, fixed-rate low interest loan, you can potentially reduce your repayments and save money.
To help you understand the benefits of debt consolidation, we have created this guide with everything you need to know to make an informed decision about your finances.
Ready to discuss consolidating your debts? Then contact us today and our Finance Technicians will go over exactly how we can help you with one of our debt consolidations.
How Do Loantec’s Debt Consolidation Loans Work?
The purpose of a debt consolidation loan is to combine all your current debts into one payment. By bringing all your individual payments into one, fixed-rate low interest repayment, you can potentially save money. It also makes it easier to manage as you’ll only have a single payment to make instead of multiple different ones!
To get started, the first thing our Finance Technicians will do is analyse your financial situation. Understanding your debts and various repayments allows us to find a debt consolidation solution that will save you money, without putting you into further financial hardship.
Part of our Loantec promise is that we’ll never push you into a debt consolidation that will end up costing you more. We’re dedicated to helping our clients get through their financial problems. So we only recommend these when we can see it will save you money.
What’s the Best Type of Debt Consolidation Loan?
To ensure we’re helping you the best way possible, we provide a range of debt consolidation loans to suit different circumstances. Everyone’s situation is different, so the right consolidation for one person may not be right for you. Our Finance Technicians will talk with you and present a range of options that will suit your situation the best.
One of the most popular method of debt consolidation is combining your various debts into a single personal loan. These involve transferring all your debt, including credit cards, bills, and loans, into a single loan with one, fixed-rate payment. From there, you’ll only need to make a single payment per week or fortnight for the life of your new loan. No more multiple payments at various interest rates!
Home Equity Loan
Another option that’s a great choice is utilising the equity in your home to take out a loan and consolidate your debt. The benefit of this method is that you can often get great low interest rate options. Especially if you have a large amount of equity in your home.
The drawback though is that your house is at risk if you default on the loan. You should be confident you’ll be able to make your repayments before committing your home’s equity.
Credit Card Balance Transfer
Struggling under the weight of multiple credit card repayments? Then a credit card balance transfer might be the right option for you. Our Finance Technicians can help you get all your credit card debt into a single balance. Which will make managing your repayments simpler and more affordable. One thing to note though is that credit cards balance transfers will typically have a higher interest rate compared to other kinds of debt consolidations.
The Advantages & Disadvantages of Debt Consolidation
Debt Consolidation Advantages
The biggest advantage of a debt consolidation is saving money over the life of the loan. By putting all your debts into a single loan, you can potentially reduce your total interest and save hundreds or thousands of dollars.
Of course, having a single repayment means you won’t need to try juggle multiple payments and repayment schedules. This makes it way easier to budget and put money aside for a house or a holiday.
They can also help prevent you from going into bankruptcy or having defaults put against your credit file for missed or late repayments. There’s plenty of reasons a debt consolidation can be a great choice if you have a variety of different repayments!
Would like to say a big thank you to Tammi and the team at Loantec they helped us consolidate our outstanding debt to put us in a better position for the future.
100% recommend this company they made the whole processes very easy and uncomplicated.
Kacie-Leigh Maree Moylan
I can’t recommend Ryan & the Loantec team enough for their excellence service. Ryan went above and beyond to ensure I received my dream car in a short time period with great finance terms. Great communication, very efficient and great customer service. Thank you for making everything so seamless!
Thanks big Ryan from LoanTec for taking care of my recent car purchase. This is the second vehicle I’ve purchased with Ryan’s assistance and the experience was great again!
Happy to continue supporting this great local GC company and recommend my friends and family to do the same when it’s time for a new car.
Debt Consolidation Disadvantage
The main disadvantage of a debt consolidation is the potential early exit fees some lenders will charge. Our Finance Technicians take these into account when we’re calculating the costs and benefits of a debt consolidation loan.
Consolidate Your Debts with Loantec
If you’re struggling to manage your debts or just looking to pay less in interest, Loantecs debt consolidation services can potentially help you. Contact our team online or give us a call and one of our Finance Technicians will take the time to discuss your financial situation and secure the best possible offer for you. When you work with Loantec, we make the debt consolidation process stress-free and simple to understand.
Once we have some basic details, we’ll go over your debts with and work with our panel of lenders to find the best debt consolidation loan for you. We’ll also handle the entire application process for you and guide you through the journey to ensure everything goes smoothly.
You can be confident when you work with the Loantec team. We have more than 40 years of combined experience helping clients lower their repayments and simplify their finances.
Take control of your debt today. Simply complete our contact form and our Finance Technicians will be in touch to discuss your debt consolidation options.
*The information contained in this article is intended to be of a general nature only. And does not constitute financial, legal, or taxation advice. Loantec recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.