Debt Consolidation Personal Loans Combine Loans & Credit Card Debt.
Debt consolidation loans Adelaide residents wish to apply will actually be an unsecured personal loan with the purpose being to combine and refinance existing personal loans and, or credit cards. No security is generally taken over the consolidation; hence unsecured. If however one of the personal loans is a secured loan for say a car, the lender may take security over the car; depending on the strength of the applicant.
When combining loans and other forms of credit such as credit cards, they all must be in good order with payments for the last 6 months paid on time. The applicant will need to demonstrate a good credit history with no defaults.
The main reason Adelaide residents apply for debt consolidation loans is to reduce their monthly commitments. Secured loans are taken out over a 5 year term, if you have two of these for example combining them into one 7 year loan will reduce your monthly repayments. If you are finding that you can not get your credit cards reduced, consolidating these will pay them out.
There is no point applying for a debt consolidation loan if you have been late on any of the current personal loans or credit card payments within the last 6 months.
Unsecured Personal Loan Interest Rates
Interest rates for unsecured personal loans for debt consolidation will typically be higher than for secured personal loans; due to the reduced security the lender has.
While the finance brokers at Houston Finance try to get the best outcome for you, Houston Finance does not determine the interest rate, the lender does.
Interest rates are set based on the strength of the unsecured personal loan application and only once approved, will Houston Finance and then the customer be aware of what terms will be offered in the unsecured personal loan contract; such as interest rate, duration of the loan and therefore monthly payments.
Unsecured Personal Debt Consolidation Loan Features
Below is a list of features ‘typical’ to debt consolidation loans.
- Loan amounts for debt consolidation can be applied for between $5,000 and $40,000.
- Loans for debt consolidation are generally structured with repayments over a 84 month (7 year) term.
- Repayments are set up monthly, but can be paid fortnightly or even weekly with direct debit from a nominated bank account.
- Interest rates on unsecured personal loans for debt consolidation are set by the lender once approved and because of the lack of security the lender has, interest rates are generally higher than if the personal loan was secured; all other factors being equal.
- Loan protection insurance can be included in the financed amount of a debt consolidation loan.
2 ways to Apply For Debt Consolidation Loans
Fast Way
The fastest way to get an answer for finance is to complete our easy application form online. You even have the ability to attach files from your computer.
Easy Way
The easy way to apply for finance is to request a call back. Leave some details and we’ll call you back to complete the loan application over the phone.