If you’re struggling under the weight of multiple loans and repayments, then talk to the Finance Technicians at Loantec about our debt consolidation loans today. By reducing your existing debts into a single, fixed-rate low-interest repayment, you could potentially save hundreds off your regular monthly repayments.
Debt consolidation loans have helped thousands of people around Australia get their finances back under control. Fill in our simple pre-qualification form today to find out how a debt consolidation might be able to help you save money. From there, our Finance Technicians will be in touch to discuss your factual options.
How Do Debt Consolidation Loans Work?
Debt consolidation loans work by combining all your debts and repayments into one loan with a single fixed repayment. This has the benefit of making it simpler to manage your finances, while also potentially reducing your repayment amount as well.
Using an unsecured personal loan, we can pay out your individual debts, like credit card balances, personal loans, car loans, and even Ezipay debts, and then bundle them all into a single, fixed-rate low interest loan.
By bringing them all into a single repayment, it means all your debts will be subject to the same fixed rate. Making it easier to manage the repayments and also making them more affordable.
At Loantec, we take great care to always ensure you are getting the best financial product available to you. When we offer a debt consolidation, we make sure we’re only offering a solution that will put you into a better financial position in the long run.
Are There Any Additional Fees or Charges?
When we’re consolidating your debts, we aim to always ensure your repayments are lower than what you’re currently paying. However, there can be fees and charges when doing a debt consolidation loan. These are usually the result of your original lender having termination or early repayment fees.
When we consolidate your finances we’ll include the costs of these fees into the total of the loan. And ensure you are 100% aware of any additional fees and charges.
Why Consolidate my Debts?
Aside from the single, easy to manage payment, there are actually several reasons why debt consolidation loans could be right for you.
Lower Repayments = Higher Borrowing Capacity
One of the best reasons for considering debt consolidation is being able to increase your borrowing capacity. Whether you’re looking to buy your first home, need a new car for work, or want to go on a holiday, if your income is taken up by a number of different loan repayments, you might find it difficult to get approval.
But reducing your debts into a single, low-interest repayment could potentially increase the amount of income available for your new car or home loan. Of course, not all debt consolidations will lead to an increase in borrowing capacity. And you should always get professional financial advice before making any decision.
Lower Risk of Defaulting or Missing Repayments
When there’s only a single payment to manage, it is much easier to ensure it is being paid. With multiple repayments, on different days and frequencies, it can be easy to let a payment slip your mind and be missed. But this can lead to serious consequences for your credit score if it isn’t handled correctly.
By cutting it down to just one, you’ll have an easier time managing them all. And it will significantly reduce your chances of missing the repayment or defaulting.
Better Interest Rate Options
Another great reason to consolidate is access to better interest rates. While this isn’t always the case, or may only be true for some of your debts. It’s often the case that our Finance Technicians can secure your debt consolidation loan at a comparable or even lower interest rate.
Can You Get Secured Debt Consolidation Loans?
Yes, while unsecured debt consolidation loans are the standard, there are secured options available as well. You can put your car, home or another asset as collateral on your loan. This will usually help you get a lower interest rate and get better conditions.
Of course, there are inherent risks involved with this. For instance, if you default on the loan you could potentially lose your car or home. Which is why we generally focus on unsecured debt consolidation loans.
Will a Debt Consolidation Loan Always Reduce My Debt?
Unfortunately no. While debt consolidation loans are a great option for some people. They’re not always going to help your specific circumstances. Everyone has different financial situations. And in some cases, consolidating your debts won’t reduce your repayments or make them more affordable.
This is particularly true if you’ve only just taken out the loans or if they’re at a very competitive rate. Recent loans will most likely have higher early repayment fees. And those additional fees can often increase the costs of the consolidation too high to make it worthwhile.
At Loantec, we’ll only offer a debt consolidation if it will improve your financial situation. Find out whether a debt consolidation is right for you by filling in our pre-qualification form and talking to one of our Finance Technicians today.
Loantec Debt Consolidation Loans
Not sure whether a debt consolidation loan is right for you? Get in touch with the Finance Technicians here at Loantec! With more than 40 years of combined experience in finance, lending and problem-solving, our team understands what it takes to get you the best deal.
Your first step is filling in our pre-qualification form. This will give us the details we need to assess your situation. From there we can advise whether a debt consolidation will meet your financial goals.
Contact Loantec to discover how we could potentially reduce your debt with our debt consolidation loans today.