Debt Consolidation loans are very popular with many Australians. They have heard somewhere that one is able to save money by consolidating debts, and make an application. However not everyone applying for a debt consolidation loan will be able to qualify for one or save money through consolidation.
Borrowers with a clean credit history are able to consolidate through a number of methods including:
(i) Personal Loans through mainstream finance companies, credit unions or banks;
(ii) Mortgage refinance to consolidate outstanding debts into an existing mortgage;
(iii) Rolling over current credit card balances into a new low rate credit card.
Borrowers with some history of bad credit including discharged bankruptcy, part 9, paid or unpaid defaults - will not qualify for an Unsecured Personal Loan as these are only available to clean credit applicants. Their options are limited to :
(i) Consolidation via a mortgage refinance - however a refinance is only possible to a maximum of 80% after all debts are consolidated. If you require more than 80% there are almost no lenders who could help out;
(ii) Consolidation via a part 9 agreement. This methos is very detrimental to your credit history and should only be taken up as a last alternative before bankruptcy;
(iii) Bankruptcy - not a consolidation solution but rather a method to eliminate debts. This has very serious repercussions and should not be taken on lightly.
Borrowers with a clean credit history are able to consolidate through a number of methods including:
(i) Personal Loans through mainstream finance companies, credit unions or banks;
(ii) Mortgage refinance to consolidate outstanding debts into an existing mortgage;
(iii) Rolling over current credit card balances into a new low rate credit card.
Borrowers with some history of bad credit including discharged bankruptcy, part 9, paid or unpaid defaults - will not qualify for an Unsecured Personal Loan as these are only available to clean credit applicants. Their options are limited to :
(i) Consolidation via a mortgage refinance - however a refinance is only possible to a maximum of 80% after all debts are consolidated. If you require more than 80% there are almost no lenders who could help out;
(ii) Consolidation via a part 9 agreement. This methos is very detrimental to your credit history and should only be taken up as a last alternative before bankruptcy;
(iii) Bankruptcy - not a consolidation solution but rather a method to eliminate debts. This has very serious repercussions and should not be taken on lightly.