Pay off your debt
There wouldn’t be many people living our contemporary, modern day society who are not in debt or who have never been in debt.Debt in itself is not necessarily a bad thing. It can be a means whereby you can have a product you either need or desire but can not immediately afford it.The problem is overbearing debt, when debt starts dictating the way your life is lived.It is then that you need to seriously consider debt consolidation.
One way to avoid having to resort to debt consolidation is to make sure that you never place yourself in the position of getting yourself into uncontrollable debt in the first place.This can be done with effective budgeting and not living beyond your means.
If, however, things are starting to get out of hand and debt consolidation appears to be a looming alternative, there are some preliminary actions you can take immediately, such as:
- Get rid of your credit card debts.
- Finish off your car loan or alternatively sell it and use public transport.
- Put any extra monies that you have saved into your home loan in order to shorten its term (and cost) as soon as possible.
- If you have an investment loan arrange for better rates if it is possible, but keep it intact as long as you can.If you can sell out at a profit, do so.
Many people unknowingly head towards debt consolidation during their proudest moments,the day they sign the settlement papers for the purchase of their own homes.The dream of getting the keys of your own home can sometimes be so great that it clouds your better judgment and you sign up to repayments that effectively take away your quality of life.One way of avoiding this risk is to do your own debt reappraisal which would include such things as the following:
- Be certain about the interest rate you will be paying.If it is at your affordability limit right from the start you will no doubt find it un-affordable if interest rates were to increase in the future. Don’t enter the market at your affordability limit.
- If you have chosen a fixed interest rate loan, estimate what your financial position will be when the fixed period ends and the rate changes over to a variable rate.
- It is often cheaper to arrange weekly or fortnightly home loan repayments than to blindly accept monthly repayments.
- Do not accept a shorter term if it means that you will be struggling to pay the repayments.You can often catch up later with additional repayments when you can afford to do so.
- Try to avoid a loan that charges monthly or annual maintenance fees.
Be fully aware right from the start about where you would stand if you found the repayments hard to keep up with for any reason.Many home loans these days have clauses that can assist the mortgage holder through hard times such as interest only periods or a period in which repayments can be paused.
It will always pay to prioritize your debts before resorting to applying for debt consolidation by paying off the most damaging debts first.You can then try to cut down or remove your credit card debt. You may be able to manage this by taking out a new credit card that will effectively absorb the interest owing on your old cards.
Remember that applying for debt consolidation can be your last bastion of defence against being declared bankrupt.Avoid this action being taken as much as you can as it will haunt you financially for many years to come if you are forced to succumb to such pressure.
You can view comparison tables here for more information about personal loans and debt consolidation loans, or follow a secure link to a providers website.
Featured Personal Loans
| Personal Loan | Details | Min Interest Rate | Min Comparison Rate | Min Loan Amount | Min Loan Terms | Apply Fee | |
|---|---|---|---|---|---|---|---|
 ME Bank Personal Loan | A low rate personal loan from ME Bank with no application fee for a limited time. | 13.59% | 13.81% | $5000 | 1 year | $0 |   |
 Aussie Personal Loan | A smart way to consolidate your bills to save time and money so you can pay for your holiday, a wedding or renovate the house. | 13.90% | 14.84% | $3000 | 1 year | $199 | |
 Sugar Money Personal Loan | Fixed rate personal loan with flexible options to get you funds when you need it. | 13.99% | 15.00% | $3000 | 2 years | $250 | |
 bankmecu Personal Loan | A convenient and fast way to purchase a car or debt consolidation with affordable rates and fees. | 13.49% | 14.55% | $1000 | 1 year | $150 | |
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- St.George Debt Consolidation Loan
- Debt Consolidation Loan – Consolidate your debt with Loan Consolidation
- Debt Consolidation with a Commonwealth Bank Personal Debt Consolidation Loan
- Debt Consolidation Calculator
- Debt Relief