Alternatives to Debt Consolidation Loans

If you are in debt and are finding it difficult to manage your repayments it's important to look at all options available to you in order to resolve your financial situation.

A Debt Consolidation Loan is only one option available to you. Read, What is Debt Consolidation? for more information

Other options that may be available to you include:

Informal Arrangements

An informal arrangement is an arrangement with some or all of your creditors to assist you in managing the repayment of your debt. Once creditors are contacted and are informed of your financial position, many, when aware of genuine financial difficulties, will assist you.

Debt Agreements

A debt agreement is a simple method for you to enter into a legally binding agreement with your creditors. It provides protection that an informal arrangement does not. However there are eligibility criteria and there are consequences.

Personal Insolvency Agreement

A Personal Insolvency Agreement allows you to propose a compromise with your creditors and it is another way you may be able to take control of you financial situation. Again it has consequences and specific requirements.

Mortgage Refinancing

Refinancing your property may be an option if you are in debt or are struggling to pay your existing mortgage. Mortgage refinancing allows you to package the repayments from all your debts into one convenient payment, where you may end up paying less per month than you currently are. In many ways it is similar to debt consolidation.

Conclusion

Whatever remedy you choose to resolve your debt problems you need to be careful and to be fully informed. Make sure:

• You fully understand what you are doing
• The solution will be of real benefit to you and not just a short term fix
• You have achieved control over your debts
• Your repayments will be reduced and not increased
• You are fully informed of the consequences of the steps you are taking
• There are no hidden costs
• You are better off as a result of the solution you have chosen

If you have any questions about debt consolidation or the other options mentioned above, our staff are available to assist you immediately. Contact us on 1300 306 272.