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Debt Consolidation Loan Features
Loan Saver Network offers free debt consolidation assessment and advice to assist with better ways of managing debt. There are many loan types and features, options, fees, and interest rates across the variety of lenders.
- Interest rates are variable depending on credit issues, loan ratio and type. Interest Rates starting from 3.69%.
- Flexible repayment options – weekly, fortnightly, monthly.
- Consolidate loan arrears, bad debts, credit defaults, judgements and debt collectors.
- Debt Negotiation available to reduce balance of debts in most cases.
- Bad Credit OK.
A free debt consolidation assessment will assist in identifying the best outcome for combining your debts into your home loan. A successful debt consolidation is one where the current risk to your credit file is reduced or eliminated and you have achieved a substantial reduction in payments across your loans and debts allowing you to meet your commitments and get your life back.
Call Loan Saver Network today for a free debt assessment on 1300 796 850.
Stressed by your Debts and seeking a Debt Consolidation Mortgage?
Wondering how to meet your payments and still have a life?
Looking for expert advice and experience on your side?
We Are Here To Help
Good debt, bad debt, debt collectors, arrears on your home loan, court judgements, credit defaults, bankruptcy notices, or even if you’ve been declined previously. Loan Saver Network are specialists in good and bad credit debt consolidation and the finance options available to you.
We focus on assisting our clients through their debt problems using debt strategy techniques obtained through years of experience. One solution we offer is a debt consolidation mortgage. When applied at the right time, a debt consolidation home loan is set up to reduce the amount of debts for our clients that are carrying high interest rates.
We were established in 1999
We are specialist debt consolidation mortgage brokers with a difference. We are debt and finance strategists and have Australian Credit Licence authority.
We understand the various lenders policies to ensure we obtain the most competitive funding options for your solution. Our debt consulting, negotiation and loan advice allows us to package the right finance, to the right debt inside of a strategic approach to moving your financial situation forward.
Contact us today for a Free Loan Consultation to assess your potential for a debt consolidation home loan.
What is debt consolidation?
Traditional debt consolidation is a process where a loan is established to pay and close two or more other debts or loans. Under the umbrella of the term debt consolidation there are a number of different facilities which are split between secured and unsecured lending, and then further split between good credit and bad credit debt consolidation. The intention of debt consolidation is usually to reduce the outgoing payments though there are other uses that are listed below:
- Reduce outgoing payments – this is achieved in 2 ways
- Reduce the overall interest rate
- Extend the payment terms of the debts
- Payout loans that are in default or arrears – paying them out with a new loan will reset your lender agreement and essentially allow you to start from a fresh slate.
- Simplify the payments – if you have 15 debts, it could be quite difficult to manage your cash flow if you are receiving income once per month, yet your payments are spread over the month causing issues with meeting payments.
- Debt consolidation is also a term used for other solutions such as bankruptcy which was termed as debt consolidation by unscrupulous operators in the bankruptcy field seeking to minimise the negative perception of part 9 debt agreements, or part 10 insolvency (PIA) and used as a sales process, by avoiding the actual names listed above.
Misconceptions of debt consolidation mortgages?
As made mention above the term debt consolidation has been used, and misused as a sales process by unscrupulous bankruptcy operators, however there are many other misconceptions related to debt consolidation:
Debt Consolidation Misconceptions
- Debt Consolidation Loan has been established, however later found by the client it was not a debt consolidation and was in fact a form of bankruptcy such as a Part 9 Debt Agreement as noted above.
- Debt Consolidation always lowers your repayment – not all debt consolidation structures allow you to reduce your repayment. This is especially the case when an unsecured loan is established to repay a number of debts, as quite often an unsecured debt consolidation loan can attract quite a high interest rate resulting in little reduction in payments, and benefit to you.
- Debt Consolidation always lowers your interest – there are differences between interest rate, and interest. In most cases the overall interest rate is reduced, yet when the loan term in extended such as in the case of refinancing credit cards, or personal and car loans into a new home loan the term of the debt is extended out to the term of the home loan. This particular misconception has caused debt consolidation to acquire a negative perception in the community.
Examples of a debt consolidation home loan solution:
When establishing a debt consolidation home loan solution the client need is very important to understand; and may actually be in conflict with the perceived need which is based on the misconceptions noted above.
- Are the debts in arrears or default?
- Are the debts maintained perfectly or have missed payments?
- What is the cause of any payment issues?
Example 1: If the debts are in default and were caused by a singular event such as the loss of a job, however a new job has been obtained. The solution may be to avoid an escalation of credit issues and maintain future credit worthiness. Of course, seeking a competitive interest rate is important however the primary solution will be to protect your credit score to enable future competitive investment prospects.
Example 2: An income event such as long term sickness of a family member or a pregnancy has caused a reduction in household income and is ongoing. This primary solution would be to reduce your overall payment expenditure to a point where your budget would be in surplus. Therefore, obtaining competitive interest rate over an extended term of the loan to enable a reduction in payments is the primary focus.
Example 3: All debts are maintained well and a surplus of income is evident. In this case the objective would be to minimise the interest expense which would be to establish a debt consolidation loan with the lowest interest rate possible, then maintain your current payments (or increase) to reduce the term to finalise the debts.
Example 4: All debt limits have increased over time with no singular income event being evident. In these instances, it is very unusual for debt consolidation to be effective as the issue is not related to the debts seeking to be paid out. These instances usually are a result of a change in the capacity to pay such as gambling, drugs, or mental illness. Some other solution is usually more beneficial, however if evidenced that the issues are finalised for a minimum 3 month period then debt consolidation may be a solution.
Example 4: Divorce – divorce is one of the most traumatic events a family can experience. The effects can be financially devastating for all parties, if grievances spread to the payments (or non payment of debts) or the perceived responsibility of the debts is transferred to the other party. Debt consolidation may be effective solution, however the effects of marital dispute on debts and the extended time for a divorce to settle may mean a debt consolidation is not a viable solution. An in depth analysis of the debts, and asset ownership would need to be assessed to enable an effective solution.
Debt Consolidation as a solution
As you can see from this article, the solution for a debt problem is not always evident, and debt consolidation as a solution is not always the most suitable solution.
An in depth analysis of both the actual need, and the solution needs to be conducted. Under the new lending regime in Australia called the National Consumer Credit Protection Act (NCCP) extensive needs analysis on all loans is mandatory, however we have been following this same assessment process for many years and arrange debt consolidation solutions for a wide range of cases. No client has the same story or issue with all solutions custom designed.
Begin the process today with a debt consolidation consultation to see if this is the right and most effective solution for your need.
Can a Debt Consolidation Loan be obtained with Credit Issues?
Yes, there are various debt consolidation loans available. There is a range of lending products available where there are or have been erratic payment history on the debts, credit defaults, or judgements.
- Credit defaults
- Court judgements
- Poor Credit Score through too many loan enquiries, or payday loan applications.
- Home Loan Arrears
- Discharged bankruptcy
- Undischarged bankruptcy (in some circumstances)
- Company Liquidation
- Business Wind Up
If you can see any of the above circumstances occurring with your credit accounts taking action earlier could assist is stopping credit defaults being lodged.
Why Work With The Loan Saver Network ?
Australian Credit Licensed
Variety of Standard and Specialist lenders
15 Years Lending Experience
Simple Straight Forward Solutions based Approach
Ongoing Support Program.
More and more often these days we are helping clients with credit card debt consolidation. Credit cards are great if they are used appropriately. The issue we have been seeing is no clear exit strategy for eliminating the credit card debt. See below some examples of credit card debt that needs to be consolidated.
Primary Purpose of Credit Cards: (Intended)
- Used as accessible funding for emergency purposes.
- Streamlining payments – the credit card is used to manage outgoings on a month to month basis and the full balance paid out each month.
Exit Strategy for Eliminating Credit Card Debt (Best Case)
- Escalating payments above the minimum required to enable paying the card off within a 6 month period.
- Consolidate credit card debt into a lower interest loan with a set term to reduce the balance to $0. ie 1, 2, 3, 4, 5 years.
- Debt Consolidation – Credit Card Debt Consolidation using your Home Loan
Example of Credit Card Debt that Needs Consolidation
- Credit card balances are consistently above the card limit.
- You can see you will be missing payments in the near future.
- Your credit balances are increasing even if you are making payments.
- You are using credit cards to top up your monthly budget.
- Your account has been referred to the lenders collection department.
If you can see any of the above circumstances occurring with your credit accounts, please make contact to discuss at the earliest opportunity. Taking action earlier produces better results in the way of lower interest rates, and also assists in protecting your credit file.