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Debt Consolidation Home Loans
Loan Saver Network offers free debt consolidation mortgage assessments and advice. The goal is to find better ways of managing your debt by reducing monthly outgoings. There are many loan types, all with different options, fees, and interest rates They are offered by a wide variety of lenders. Every client is unique, and different loans will suit some better than others. Some variables include :
- Interest rates. They will vary depending on credit issues, loan ratio and type of debt. Interest rates start from 3.69%.
- Flexibility of repayment options – weekly, fortnightly, monthly.
- Option of offset facility.
- Fixed or variable interest rate options.
- Include consolidation of loan arrears, bad debts, credit defaults, judgements and debt collectors.
- Do we need a debt negotiation to reduce the balance of debts.
- Will the lender accept application with Bad Credit file.
Book Your Free Mortgage Consolidation Assessment To Solve Your Debt Problems
Our free debt consolidation assessment will assist in identifying the best outcome for combining your debts into one easier to manage home loan. A successful debt consolidation loan, is one where the current risk to your credit file is reduced or eliminated. You can afford your monthly debt repayments because combined monthly interest rates are reduced and the term of the loan is extended. Taking away the stress of accumulating debt can help you get your life back.
Call Loan Saver Network today for your 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?
What is debt consolidation?
Basic debt consolidation is a process where one home loan is established to pay and close two or more existing home loans and other debts, such as credit cards or personal loans.
Under the umbrella of the term debt consolidation, there are a number of different loans that can be applied for, to provide both a personal or business debt solution. They can include both managable or bad debts, depending on each individuals needs.
The intention of debt consolidation however is usually to reduce outgoing monthly payments. There are other uses that are listed below:
- To reduce outgoing payments – this is achieved in 2 ways
- Reduce the overall interest rate. Debts such as credit cards, store cards and other unsecured loans often carry high interest rates and monthly repayment needs.
- Extend the payment terms of the debts (for example a thirty year mortgage)
- To pay out loans that are in default or arrears. By clearing them with a new loan, this will reset your lender agreement and essentially allow you to start from a fresh slate.
- Simplify repayments. If you have multiple debts, it can be difficult to manage your cash flow, and pay them all on time. By consolidating your debts, you can have one simple repayment each month.
Debt consolidation is not a form of bankruptcy, part 9 debt agreement, part 10 debt agreement or other insolvency solution to debt. Beware of unscrupulous operators in the bankruptcy field who may try to minimise the negative perception of these options as a sales process. Debt consolidation mortgages are a way to avoid the pitfalls of bankruptcy.
Examples of a debt consolidation home loan solution:
When establishing a debt consolidation home loan, the client needs are very important and must be understood. We solve clients financial problems, we don't sell products to benefit ourselves. The solutions can at times appear to be in conflict with the perceived needs of a client, often due to misconceptions listed further down this page.
Below are a list of facts to consider when applying for a debt consolidation mortgage.
- Are there debts in arrears or in default?
- Are the debts maintained perfectly or have payments been missed?
- What is the cause of any payment issues?
- Which debts will we be able to bundle into one loan?
If debts in default were caused by a singular event such as the loss of a job, however a new job has been obtained.
The best solution may be to avoid an escalation of credit issues to maintain future credit worthiness. Of course, seeking a competitive interest rate in a new loan is also important. The primary solution will be to protect your credit score, to enable future competitive investment prospects.
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 rates over an extended term is the primary focus of consolidating debts.
All debts are maintained well and a surplus of income is evident.
In this case, the objective would be to minimise the interest expense. We would find a debt consolidation loan with the lowest interest rate and fees possible. You can then maintain your current payments (or increase) to reduce overall 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. This is because the issue is not related to the debts needing to be paid out. This situation is often a result of a change in the capacity to pay, such as injury, gambling, drugs, or mental illness. Other solutions are usually more beneficial unless a steady return of income and expenditure is established for a minimum of three months.
A divorce is one of the most traumatic events a family can experience. The effects can also be financially devastating for all parties. This is especially the case when grievances spread to the payment, or non payment of debts. Often the perceived responsibility of the debts is transferred to the other party. There are also other associated costs with many divorces, such as legal fees.
Debt consolidation may be an effective solution in this case. However, the effects of marital dispute on debts and the extended time for a divorce settlement may mean debt consolidation is no longer a viable solution. An in depth analysis of the debts, and asset ownership would need to be assessed to enable an effective solution.
We Are Here To Help
Good debt. Bad debt. Debt collectors. Arrears on your home loan. Court judgements. Credit defaults. Tax debts. Bankruptcy notices. Consolidation loans declined. Who do you speak to for reliable, experienced advice?
Loan Saver Network are specialists in good and bad credit debt consolidation. It is what we do. We understand in depth the finance options available to you. We have dealt with all kinds of debt situations, both person debt and business debts. Finding the right way to refinance is what we offer our clients.
We focus on assisting clients through their debt problems, not selling products. Our team can use debt strategy techniques which can only be obtained through years of experience.
One solution we offer is a debt consolidation mortgage. However, this might not be what is right for you. Only by contacting us, and having a real conversation, can a solution be found. We offer a free initial consultation, to get the facts and make a plan.
Misconceptions of debt consolidation mortgages?
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
- A common misconception is that a Debt Consolidation Loan is a from of debt agreement such as a Part 9 Debt Agreement or another form of bankruptcy. This is not the case. True debt consolidation is a way to avoid bankruptcy, not a voluntary form of bankruptcy.
- Debt Consolidation always lowers your repayments. Though this is often a goal, not all debt consolidation structures allow you to reduce your monthly repayments. In tougher cases where an unsecured debt consolidation loan is established to repay a number of debts, there can be a higher than expected interest rate. Getting the right loan is what is important, not a loan that suits your broker.
- Debt Consolidation always lowers your overall interest payable. There are differences between interest rate, and overall interest. Refinancing credit cards for example may reduce monthly payments significantly, but due to the long term of a loan, the lifetime interest may end up being higher. This is offset however by the short term breathing space of a lower monthly payment.
Providing Debt Solutions Since 1999
We are specialist debt consolidation mortgage brokers with a difference. Our team are debt and finance strategists and have Australian Credit Licence authority. Solving debt issues is what we have excelled at since before the new millenium.
The Loan Saver Network understands the various lenders policies to ensure we obtain the most competitive funding options for your solution. Not only that, the strategy behind refinancing your debts will make sense, and achieve realistic goals.
Our debt consulting, negotiation skills and debt consolidation experience allows us to package the right finance for our clients to fix short term issues and allow for long term debt issues. A strategic approach to debt is often all that is needed. We understand the solutions available to your debt problems.
Contact us today for a Free Loan Consultation. We can assess your suitability for a debt consolidation home loan or advise on other solutions when more appropriate. It's what we do.
Debt Consolidation as a solution
The solution for a debt problem is not always evident, and debt consolidation as a solution is not always the most viable. Particularly for business debts, other loans such as business caveat finance, lines of credit, unsecured business finance or different strategies may be required.
An in depth analysis of both the actual need and how to solve the problem may need 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 now mandatory. We have been following this same assessment process for many years because we think it is important.
No client has the same story or issue so all solutions need to be considered. One can not just say, you should get a debt consolidation loan, without first doing the research.
Begin this process today with a free debt consolidation home loan assessment. This will save time on failed applications and speed up the road to recovery.
Can a Debt Consolidation Loan be obtained with Credit Issues?
Yes, there are various debt consolidation loans available which allow for credit issues or existing defaults to be refinanced. It is important to apply for the right loan, as declined applications are easy for other lenders to find. This can create skepticism on their behalf as to the viability of lending you money.
However, loans can be refinanced to include those with :
- 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 Proceedings
If you can see any of the above circumstances occurring, taking action earlier could assist is stopping further credit defaults being lodged. Contact us for advice today.
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.