Debt Consolidation Loan

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If you are in debt a debt consolidation loan may be a solution for you.

What is a debt consolidation loan and how does it work?

A debt consolidation loan is the replacement of multiple loans and debts, such as credit cards and unsecured personal loans, with a single personal loan.

If you are in debt, another option that may be available to you is a debt agreement. A debt agreement is a negotiated compromise with your creditors. Fox Symes is the largest provider of debt agreements in Australia.

What are the benefits of debt consolidation?

With a debt consolidation loan you only have to make one repayment rather than numerous repayments. With a debt consolidation loan you may end up with a lower monthly repayment and a longer repayment period. This can help some people to manage their finances more effectively.

Example of how a debt consolidation loan may work

Say you have personal loans or credit cards with outstanding balances totalling $30,000. The minimum repayment for all these debts is around $1,050 per month. By consolidating all these debts into a single loan over a longer term, the amount you may have to repay could be reduced to less than $520 per month. A savings of $530 per month.

How often can I make repayments on a debt consolidation loan?

You can normally make payments either weekly, fortnightly or monthly. The length of the loan can be set for a repayment which meets your needs. You may be able to choose between 12 months and 7 years depending on the purpose and the amount requested.

What is the difference between a Variable or Fixed interest rate debt consolidation loan?

A variable rate loan gives you the flexibility of making extra repayments at any time and at no extra cost. A fixed rate loan means your repayments are fixed for the term of the loan.

Do I need security to make use of debt consolidation?

Normally a debt consolidation loan is an unsecured loan, so generally, no security is required. However there may be circumstances when a lender will ask you to provide security.

What fees do I need to pay?

Most debt consolidation loans have no ongoing fees and no early repayment fees. An establishment fee may be payable.

When applying for a debt consolidation loan

When applying for a debt consolidation loan you need to be careful and to be fully informed. Make sure:

• You fully understand what you are doing
• The debt consolidation loan will be of real benefit to you and not just a short term fix
• You have achieved control over your debts
• Your repayments will be reduced and not increased
• You are fully informed of the consequences of the steps you are taking
• There are no hidden costs
• You are better off as a result of the solution you have chosen

Fox Symes can assist you through our relationship with lenders with either a personal loan or a debt consolidation loan.

Fox Symes is the largest provider of debt solutions to individuals and businesses in Australia. Fox Symes helps over 100,000 Australians each year resolve their debt and take financial control.

If you would like to find out more about a personal loan or a debt consolidation loan contact us on 1300 361 204 or fill out the short contact form.