Bad Credit Debt Consolidation Loans
Are you finding it challenging to manage all of your repayments? Plus, creditors and debt collectors are calling? Then bad credit debt consolidation loans may be the answer.
Debt consolidation is a process where finance is obtained to combine all the debts into a single manageable payment. As a result of the debt consolidation, you will have a single loan payment. Plus, the issues with your current loans are wiped clean; and finally, you can move forward!
Loan Saver Network has been offering bad credit debt consolidation loans and debt consolidation mortgage solutions since 1999.
We have arranged bad credit loans and solutions with different options, fees, and interest rates. As every client is unique, each solution is tailored to suit you, even if you have problems with your credit history.
Reduce Your Repayments
Get Debt Collectors Off Your Back
Loan Been Previously Declined?
Stop a Bankruptcy or Credit Defaults
Debt Consolidation Loans have lending policies just like traditional loans. However, the lending policies include credit impairment as a policy. As such, the home loan features can be very similar to the features of the major lenders.
Fees and Interest Rates
- Initially, variable and fixed rate loans are available.
- Secondly, the establishment fees can vary between lenders.
- Also lenders risk insurance is similar to traditional mortgage insurance. However, mortgage insurersaccept any credit issues the lenders must use their own or other private style mortgage insurance called risk insurance.
- Plus, various fees and charges such as lender legal fees and title insurances.
- Interest rates offered vary according to credit issues. As such, credit defaults, loan value ratio (LVR) and the payment history on the debts reflect in the interest rate.
- Loan terms and conditions fees and charges apply to the different risk catagories.
Consolidation loan amounts are set up to pay all debts, loans and include all fees. As such, in most cases there are no out of pocket expenses. However, in some cases valuation fees are paid upfront.
- Also, some loans have 100% offset facilities.
- Flexible repayment options are offered. Such as weekly, fortnightly, monthly.
- Redraw and extra repayments.
- Early repayment of the loans are available.
- Interest only and principle and interest payments are available. However, repayment amounts will vary depending on the lenders interest rate and loan term.
- Also, negotiation of debt can be available to reduce the debt balance.
- Finally, credit defaults and other credit issues can be accepted.
Types of acceptable bad credit for consolidation:
- Initially, consolidation loans for accounts in arrears. Hence, home loans arrears, unsecured loan arrears and late payments on your accounts.
- Secondly, Bad debts such as debt collector payments or debts pending legal action.
- Also, Credit defaults listed on your credit report by a credit reporting agency.
- Court Judgements. As such, a company or individual has obtained court orders for you to pay.
- Finally, Repay Part 9 debt agreements and other insolvency agreements such as Part 10 insolvency.
Book Your Free Bad Credit Debt Consolidation Assessment To Solve Your Debt Problems
Our bad credit debt consolidation assessment will assist in identifying the best solution for you. As such, we will seek to combine your debts into your home loan and aim for a lower repayment.
A successful debt consolidation loan is one where the current risk to your credit file is decreased. Plus, where you can afford your monthly repayments. As such, this can be achieved by either reducing your monthly interest rates; or by extending the loan term.
Call Loan Saver Network today for your free debt assessment on 1300 796 850.
Let's talk about a solution that suits you
Debt consolidation is where a loan is established to pay two or more loans or other debts. As such, we mostly consolidate credit cards or personal loans. However, consolidation can include other debts such as court judgements or tax debt.
Is Debt Consolidation an effective solution?
The cause of debt problems is not always evident. Consequently, debt consolidation is not always the most suitable debt solution. As such, there are many debt solutions with each being effective debt solutions given an appropriate debt issue.
- Firstly, Debt Consolidation.
- Debt negotiation to reduce your debt balances.
- Then, Informal payment arrangements.
- Part 9 debt agreements.
- Also, Part 10 Insolvency.
- Business Liquidation or wind up.
Any of the above debt solutions could be most appropriate for you. However, professional assessment and advice would be advisable as each solution has there own benefits, problems and costs. As such, no client has the same story or issue, so all solutions need to be considered. Consequently, there is no one size fit all solution where a debt consolidation loan will solve all debt issues.
How does Debt Consolidation give reduced loan repayments?
Lowering your loan repayments are achieved in various ways.
- Reduction inoverall interest rate. As such, existing debts such as credit cards, unsecured personal loans and some car loans can have high-interest rates.
- Secondly, extend the loan term of the debts. For example, you are refinancing a 5-year personal loan into a 30-year loan term. Therefore, extending the personal loan term from 5 to 30 years.
Reducing the overall interest rate is a great outcome. However, extending the loan term does attract additional interest over the loan term. Therefore, the benefit to you must be greater than the cost. Such as, preventing credit defaults, or a reduction in outgoings allowing a manageable budget surplus.
Benefit in reducing your risk
Along with potential repayment reductions, there are also other benefits to your financial situation to consider. As such, these benefits are reductions in financial risk to you.
- Firstly, pay off your debt that is defaulted; or in arrears, can prevent reposession of assets.
- Secondly, reducing further impact on your credit file.
- Finally, simplify multiple debt repayments and manage your cash flow better. Hence, if you have no monthly surplus, a small mishap such as illness can quickly escalate to default. Consequently, consolidating your debts to reduce payments can assist in reducing this risk.
Contact Loan Saver today for a free debt consolidation loan assessment, and start the road to recovery.
What else should i know about debt consolidation loans?
Debt Consolidation must meet government and lender guidelines for responsible lending. Therefore, when establishing a debt consolidation home loan your requirements must meet government and lender compliance.
The intention of a debt consolidation is usually to reduce payments and resolve debt problems. Consequently, below is a list of important information to consider when applying for a bad credit debt consolidation loans.
- Firstly, are any debts in arrears or default?
- Secondly, have debts been referred to credit reporting agencies?
- Thirdly, are debts paid on time or are there late payments?
- Also, what is the underlying cause of payment issues?
- Plus, what debts will be paid and also what debts will remain with continuing payments?
- Finally, will the problems be resolved by paying out good or bad debts?
Each debt consolidation case is different and requires individual assessment. As such, does your debt consolidation meet banking and government compliance?
See the Money Smart website for information on the results achievable from bad credit debt consolidation loans.
The Loan Saver Network Approach to Debt Solutions
Working with our clients, we find some common issues causing debt. As such, there is a range of solutions for each issue. However, not all issues with bad credit require debt consolidation loan solutions.
Bad debts caused by the loss of a job? However, you have a new job.
The best solution may be to prevent an escalation of credit issues and protect your credit file. Of course, seeking a competitive interest rate in a new loan is also important. However, the primary solution will be to protect your credit score from becoming worse.
Long term sickness of a family member; or pregnancy is causing a reduction in income. As such, the underlying issue is ongoing.
Advice would be to reduce your loan payments and household expenditure. As such, obtaining competitive interest rates over an extended-term would produce the best debt consolidation results.
All debts are maintained well, and a surplus of income is evident.
In this case, the objective would be to minimise the interest expense. As such, we would find a debt consolidation loan with the lowest interest rate and fees possible. Consequently, you can then maintain your current payments (or increase them) to reduce the debt faster.
All debt limits have increased over time, with no singular income event being evident.
In these instances, it will be unusual for debt consolidation to be effective. Because the underlying issue may not be related to the debts needing to be paid out. Therefore could be an expenditure issue, or a capacity issue such as injury, gambling, drugs, or mental illness. Consequently, other solutions may be more beneficial.
Divorce is one of the most traumatic events a family can experience. Consequently, the effects can also be financially devastating for all parties. Admittedly, this happens when emotional grievances get in the way; and payments to loans and debts stop. As such, when both parties argue who pays for debts, in most cases both parties end up with credit issues.
- Divorce is expensive. As such, legal fees can amount to tens of thousands of dollars. Debt consolidation may be a practical solution in this case.
- Divorce can take a long time. Consequently, the extended time a divorce settlement can take may mean debt consolidation is not an immediate solution. However, we can conduct an in-depth analysis of the liabilities and asset ownership to advise on an effective solution.
Can Debt Consolidation Loans be obtained with Bad Credit?
Yes, there are various bad credit debt consolidation loans that allow credit defaults. As such, you can refinance loans and debts in various states of arrears and default. Therefore, debt consolidation loans can be obtained to refinance:
- Certainly, credit defaults
- Secondly, court judgements
- Thirdly, Poor Credit Score through too many loan enquiries, or payday loan applications.
- Also, Home Loan Arrears.
- Discharged bankruptcy
- Undischarged bankruptcy (in some circumstances)
- Also, company liquidation
- Finally, business wind up proceedings
If you can see any of the above conditions occurring, taking action earlier could assist in preventing further credit defaults. Contact us for advice today.
Misconceptions of debt consolidation?
As mentioned above, the term debt consolidation has been used and misused as a sales process by unscrupulous bankruptcy operators. There are many other misconceptions related to debt consolidation to, such as the below.
Common Debt Consolidation Misconceptions
- Misconception 1 is where a Debt Consolidation Loan is a Part 9 Debt Agreement; or a different form of bankruptcy. However, debt consolidation is not a part 9 debt agreement.
- Misconception 2 is that Debt Consolidation always lowers your repayments. Even though this is the goal, not all debt consolidation will reduce your monthly repayments. As such, your assessment will advise your expected payments.
- Misconception 3 is that Debt Consolidation always lowers your interest payable which is not cuorrect. For example, refinancing a 5-year personal loan to a 30-year home loan term may reduce your monthly payments. Consequently, the interest paid over the 30-year term may end up being higher.
Consolidating Credit Cards with Bad Credit
Credit Cards used for general expenses
More and more often these days, we are seeing clients needing credit card debt consolidation. Certainly, credit cards are useful. However, they can also be a problem. As such, we see an over dependance on credit cards to support a high household budget.
New lending policies with credit card debt
New lending policies are being released weekly. As such, one of the recent changes is related to credit card debt and credit card payments.
Previous payment calculations were calculated at 2.5-3% of the outstanding balance. Accordingly, this amount will increase to allow the credit card to be paid off within three years. Consequently, reducing your borrowing power on mortgage finance.
Paying off credit card debt
There are some simple ways to pay off credit card
- Initially, increasing payments above the minimum required to allow paying off within six months.
- Secondly, funds transfer to a 0% interest credit card. Then, 100% of your payments are applied to reduce the balance.
- Thirdly, consolidate credit card debt into a lower interest loan with a 1, 2, 3 or even 4 or 5-year terms.
- Finally, debt consolidation – Credit Card Debt Consolidation using your Home Loan
Example of Credit Card Debt that Needs Consolidation
- Firstly, credit card balances are consistently above the card limit.
- Secondly, you can see you will be missing payments shortly.
- Your credit balances are increasing even if you are making payments.
- Also, you are using credit cards to top up your monthly budget.
- Finally, your account is in collections.
If you see any of the above points occurring, please make contact to discuss your debt consolidation at the earliest opportunity.
We Are Here To Help
The team at Loan Saver Network are debt and finance strategists and hold an Australian Credit Licence authority. We understand the various lenders' policies and endeavour to provide the most competitive loan options for your solution. Not only that, the strategy behind refinancing your debts will make sense and achieve realistic goals.
We can assist with bad debt where:
- Firstly, debt collectors are chasing you.
- Secondly, arrears on your home loan is causing issues.
- Then, you pay to pay a court judgement.
- Also, credit defaults are preventing you from obtaining credit.
- Importantly, Tax debt is preventing you from obtaining finance.
- You've recieved a Bankruptcy notice.
- Finally, you have been declined for debt consolidation loans because of credit defaults.
We can assess your debt consolidation home loan options; or advise on other solutions where more appropriate. Contact us today for a Free Loan Consultation on 1300 796 850.