Debt consolidation loans are still very much in demand with borrowers looking to either a personal loan to consolidate high interest unsecured debts into a single payment, or a mortgage refinance which will allow the applicant to consolidate high interest debts such a store cards, credit cards and other loans into their home loan.
Borrowers with some history of bad credit need to be able to offer the security of real estate or an unencumbered motor vehicle in order to qualify for a debt consolidation loan. Car loans for debt consolidation purposes are available where a borrower is able to demonstrate that they are employed and can afford the set loan repayments.
Borrowers with bad credit history who are unable to offer loan security will not qualify for a debt consolidation loan. They may however qualify for a debt agreement.
A debt agreement is a facility which allows a person with unsecured debts in excess of $8,000 to re-negotiate the amount they will be required to pay back to their creditors, thereby reducing monthly debt repayments to a level affordable to them. There are certain requirements and regulations around the debt agreement legislation, consequently not all applicants will be accepted into this program.
It is important to understand that a debt agreement is detrimental to your credit history and while it is a great vehicle to prevent bankruptcy, it is not something we would recommend to a borrower with a clean credit history simply because they have been declined a loan with their bank.
Borrowers with some history of bad credit need to be able to offer the security of real estate or an unencumbered motor vehicle in order to qualify for a debt consolidation loan. Car loans for debt consolidation purposes are available where a borrower is able to demonstrate that they are employed and can afford the set loan repayments.
Borrowers with bad credit history who are unable to offer loan security will not qualify for a debt consolidation loan. They may however qualify for a debt agreement.
A debt agreement is a facility which allows a person with unsecured debts in excess of $8,000 to re-negotiate the amount they will be required to pay back to their creditors, thereby reducing monthly debt repayments to a level affordable to them. There are certain requirements and regulations around the debt agreement legislation, consequently not all applicants will be accepted into this program.
It is important to understand that a debt agreement is detrimental to your credit history and while it is a great vehicle to prevent bankruptcy, it is not something we would recommend to a borrower with a clean credit history simply because they have been declined a loan with their bank.