Debt Consolidation Solutions – where to start?

Over the last few years Debt Consolidation has been the cliche’ term used to describe bringing all of your loan accounts into one. The point of view is that this will alleviate cashflow issues, or at the very least give you more monthly cashflow to live or do the things you would like to do. Debt Consolidation brings to mind a course of action that will give peace from the stresses of bad credit, mortgage arrears or Home Loan defaults, or even Credit Defaults. This is quite often not the case. Loan Saver Network has been working in the Non Conforming Arena for 3 years and helped many people with Debt Consolidation solutions , and have come across many mis-guided beliefs. The end result for these clients is that they are put into either a situation they cannot get out of without a credit default being listed, or they are left paying quite a large monthly payment because they don’t qualify for traditional loans.

There are many things to consider when seeking a debt consolidation solution for your debts:

  • Lender Policies – Each lender has a policy around Debt Consolidation. Choose the wrong
    lender and you could be declined.
  • Previous Conduct – Most lenders don’t like to refinance loans that are currently in arrears.
    Some lenders are set up to handle bad credit but still have policies they must adhere to.
  • Equity – Each lender will allow a certain amount to be borrowed against your property. This is
    represented as LVR Ratio (Loan to Property Value Ratio)
  • Income – Does your situation require Low doc or can you verify your income?

If you are unable use Debt Consolidation there may be another course of action, speak to us before you take any steps. See other solutions below.

Avenues other than debt consolidation to sort out a financial mess.

  • Debt Negotiation
  • Debt Agreement (with Lender)
  • Part 9 Debt Agreement
  • Part 10 Insolvency
  • Bankruptcy
  • Debt Consolidation
  • Personal Loan
  • Gifted Moniies (From Family/Friends)
  • Loan Redraw
  • Refinance

There are other avenues, but these are the main ones to consider. Quite often Debt Consolidation will over lap into these other areas. In all circumstances there are many things to look at the identify an appropriatte course of action to alleviatte the stress of Loans that are in default. I would like to highlight the word “appropriatte” in the previous sentence. At times bankruptcy is an appropriatte course of action, at times a Part 9 Debt Agreement is an appropriatte courtse of action. At times Debt Consolidation will not alleviatte the credit or repayment issues. I have spoken to many clients on Debt Agreements where a Part 9 debt agreement has been their saviour, and others where they were recommended to declare an inappropriatte bankruptcy. It is a committment of Loan Saver Network that our client’s achieve an appropriatte solution to their issues, which could include Debt Consolidation , Part 9 Debt Agreement, Part 10 Insolvency, Bankruptcy or a simple refinance. Check out our debt consolidation calculator for an initial indication of your potential benefits.

For Information on any of these topics, or for a Free assessment of your situation Contact Us at 1300 796 850 or Apply for a Loan