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Good and Bad Credit Debt Consolidation Loans
Loan Saver Network has been offering solutions for good and bad credit debt consolidation loans and home loans since 1999. As such, we are committed to the goal of finding better ways of managing debt by reducing monthly outgoings. Indeed, there are many loan types and solutions, all with different options, fees, and interest rates. However, every client is unique, and each loan will suit some people better than others.
Consequently, a few of the debt consolidation variables include:
- Firstly, interest rates. As such, they will vary depending on credit issues, loan ratio (LVR) and type of debt.
- Secondly, there are flexible repayment options; such as weekly, fortnightly, monthly.
- Thirdly, good or bad credit debt consolidation. Consequently, interest rates and pricing reflect based on credit issues.
- Subsequently, consolidation can include bad credit such as loan arrears, bad debts, debt collectors, credit defaults, judgements and debt collectors.
- Also, is debt negotiation required to reduce the debt balance.
Book Your Free Good or Bad Credit Debt Consolidation Assessment To Solve Your Debt Problems
Our free good and bad credit debt consolidation assessment will assist in identifying the best solution for you in combining your debts into your home loan. As such, a successful debt consolidation loan is one where the current risk to your credit file is reduced or eliminated. Plus, you can afford your monthly debt repayments! Indeed, this can be achieved by either reducing monthly interest rates; or by extending the loan term. As a result, you can get back to living life instead of the fear of a phone call.
Call Loan Saver Network today for your free debt assessment on 1300 796 850.
What is debt consolidation?
Fundamentally, debt consolidation is a process where one home loan is established to pay and close two or more existing loans or other debts, such as credit cards or personal loans.
As such, there are several loan types used for good and bad credit debt consolidation loans, for both personal or business debt solutions. They can include both manageable or bad debts, depending on each individual's needs.
What are the Benefits of Bad Credit Debt Consolidation?
Debt consolidation intends to reduce outgoing monthly payments. However, there are other benefits; see below:
- To reduce outgoing payments – this is achieved in 2 ways
- Firstly, 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.
- Secondly, extend the payment terms of the debts (for example refinance a remaining 15-year term to a thirty-year mortgage)
- Also, to payout 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.
- Finally, simplify repayments. If you have multiple debts, it can be challenging to manage your cash flow, and pay them all on time. By consolidating your debts, you can have one straightforward repayment each month.
Using debt consolidation loans to pay bad credit and credit defaults
When establishing a debt consolidation home loan, the clients' requirements must clearly be understood. Indeed, because debt consolidation results can vary considerably. Fundamentally, the intention is to reduce payments and resolve debt problems. Consequently, below is a list of the information we consider when applying for a good or bad debt consolidation loan strategy.
- Are there debts in arrears or default?
- Are the debts paid on time or are there late payments?
- What is the underlying cause of payment issues?
- Which debts will we be able to bundle into one loan?
- Will the problems be resolved by paying out good or bad debts?
Solution 1 - Are the bad debts caused by the loss of a job? However, you have a new job.
The best solution may be to avoid an escalation of credit issues to maintain future creditworthiness. Of course, seeking a competitive interest rate in a new loan is also important. Therefore, the primary solution will be to protect your credit score from becoming worse.
Solution 2 - Long term sickness of a family member or a pregnancy has caused a reduction in income and is ongoing.
This first solution would be to reduce your payments and expenditure where your budget would be in surplus. Therefore, obtaining competitive interest rates over an extended-term is the primary focus of consolidating debts.
Solution 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. 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.
Solution 4 - 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. Such as a capacity issue, such as injury, gambling, drugs, or mental illness. Consequently, other solutions may be more beneficial.
Solution 5 - Divorce.
A divorce is one of the most traumatic events a family can experience. Hence, the effects can also be financially devastating for all parties. Indeed, this is especially the case when grievances spread to the payment or non-payment of debts. Indeed, when both parties renege on the responsibility of the liabilities, all parties end with credit issues. Plus, there are also other associated costs with many divorces, such as legal fees which can easily mount to tens of thousands of dollars.
Debt consolidation may be a practical 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. We would seek an in-depth analysis of the liabilities and asset ownership. Then, source an effective solution.
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 is essential on how to solve your loan or debt problem. Consequently, commentary on all loans and debts is mandatory. We have been following this same assessment process for many years because we think it is essential.
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.
Contact Loan Saver today for a complimentary debt consolidation loan assessment, and start the road to recovery.
Can a Debt Consolidation Loan be obtained with Bad Credit?
Yes, there are various bad credit debt consolidation loans available which allow for refinancing of credit issues or unpaid defaults. However, it is essential to apply for the right loan, as loan enquiries and declined applications can affect your credit score. Consequently, affecting your ability to lend you money.
However, loans can be refinanced to include those with :
- Certainly, credit defaults
- Secondly, court judgements
- Poor Credit Score through too many loan enquiries, or payday loan applications.
- 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 good and bad credit 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
- A common misconception is that a Debt Consolidation Loan is a form of debt agreement such as a Part 9 Debt Agreement or another type of bankruptcy. However, debt consolidation is not a debt agreement. True debt consolidation is a way to avoid bankruptcy and not a type 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 several 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.
Is this Good or Bad Credit Debt Consolidation a Part 9 Debt Agreement or Bankruptcy?
Debt consolidation is not a form of bankruptcy, part 9 debt agreement, part 10 debt agreement or other insolvency solution to debt. Above all, beware of operators in the bankruptcy field falsely promoting bankruptcy and debt consolidation. Finally, there is a need for personal insolvency solutions. However, a debt assessment will identify if debt consolidation mortgages are the best solution for you and avoid the pitfalls of a part 9 debt agreement or bankruptcy.
Credit Cards & Debt Consolidation with Bad Credit
Why Credit Cards Default and reasons for Debt Consolidation?
More and more often these days we are helping clients with credit card debt consolidation. Credit cards are useful if used appropriately. The issue we have been seeing is an increase in credit card debt as they are being used to fund general expenses. See below, for some examples of credit card debt.
Primary Purpose of Credit Cards
- 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
- Escalating payments above the minimum required to enable paying the card off within a six month period.
- Consolidate credit card debt into a lower interest loan with a 1, 2, 3 or even 4 or 5 year terms.
- 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 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.
Providing Debt Solutions Since 1999
We are specialist debt consolidation mortgage brokers with a difference. As such, our team are debt and finance strategists and have Australian Credit Licence authority. Indeed, solving debt issues is what we have excelled at since before the new millennium.
Loan Saver Network understands the various lenders' policies. As a result, to ensure we obtain the most competitive loan options for your solution. Not only that, the strategy behind refinancing your debts will make sense and achieve realistic goals.
Our loan and debt consulting, negotiation skills and debt consolidation experience allow us to package the right finance for our clients to fix short term issues and allow for long term debt issues. Therefore, a strategic approach to debt is often all that is needed. As, 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.
We Are Here To Help
Good debt, bad debt, debt collectors, arrears on your home loan. Court judgements. Credit defaults. Tax debts. Bankruptcy notices. Debt Consolidation loans declined because of credit defaults. Who do you speak to for reliable, experienced advice?
Loan Saver Network is a specialist in good and bad credit debt consolidation. As such, we understand the debt, how it occurs and the available finance options to you. We have dealt with all kinds of debt situations, both personal 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 use debt strategy techniques gained 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.
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.