If you keep on defaulting on your loan payments and you want to start with a clean slate, debt consolidation loans can help you. You can reduce your multiple debts into one monthly payment at a lower interest rate. But there are still essential things you need to know.

Debt consolidation means rolling multiple debts into one loan.

Let’s say you have 4 existing loans with a total of $10,000 and you are paying 10% interest for each of them every month. The debt consolidation company will negotiate the loans together, roll them into one and possibly lower your interest rate to 9%. Paying one monthly payment rather than several loans is easier to manage and lower interests can help you pay your debt in full quickly without having to worry about adverse effects to your credit.

Why would creditors agree to lower your interest rates, reduce your monthly payment or forgive some of your debts?

Creditors offer flexible payment terms to increase their chances of eventually getting paid, especially if the borrower is in a financial crisis. However, some creditors are very strict especially when it comes to accruing other loans while you are in the process of consolidating your debts.

When applying for debt consolidation, think about how much interest you could actually save by consolidating all your debt and consider your capacity to pay your monthly payments on time.

Discuss your options with lenders when it comes to late payments. Deal with the possibility of not being able to pay on time so the lender can work with you and provide you with several payment options. While most borrowers just skip a payment when running into a budget crunch, incurring a late fee should never be an option.

Make sure that it’s not bankruptcy that you need, but debt consolidation

Are your debts up to your eyeballs? Do you consistently receive payment reminders from your credit card company and other financing institutions? If you cannot pay for your utilities on time, and there are problems with rent and mortgage payment, there are two possible options-debt consolidation and bankruptcy.  When debt management program can still save your finances, debt management such as debt consolidation is a viable option. But, when debt relief will not suffice and you have no cash flow to pay for even small debt payments, bankruptcy could work. But, no matter how deep you sunk in depth, NSW Mortgage Corp, can pull you out.

We have experienced and highly-reliable mortgage consultants to help you figure out the most suitable solution to deal with your financial situation. We are offering debt consolidation loans that can consolidate your multiple debts into one simple, low-interest and easy to pay loan. We will contact your current lenders and negotiate the reduction of your interest rates, shortening of your repayment period and the loan amount. We will also assist you in paying your debts and improving your personal and household income so that you can get back on track.

Enquire now and avail of our debt consolidation loans before it’s too late!