What is Debt Consolidation?

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This calculator will show you how long it will take you to pay off your credit card debt at your current rate of repayment.

A debt consolidation loan may allow you to pay off your credit cards with a lower interest loan or alternatively, may allow you a lower monthly repayment over an extended term.

A debt consolidation loan can help simplify your finances and save you money. This calculator is only to be used as a guide.

Total amount you owe $

Your current average interest rate %

Your current monthly repayments $



Total interest you will pay $

Number of Months until loan is paid

Or number of years until loan is paid

WHAT IS DEBT CONSOLIDATION?

How does a debt consolidation loan work?

A debt consolidation loan replaces multiple loans (such as credit card debt, personal loan debt and other unsecured debt) with a single personal loan usually at a reduced rate of interest.

How will debt consolidation benefit me?

A debt consolidation loan eliminates the need to make multiple repayments for unsecured debts. It ties up multiple loan repayments into one affordable monthly amount, allowing you to meet your debt obligations while minimising your monthly outgoings.

You may currently have two or more personal loans or credit cards with outstanding balances totaling $6,000. The minimum repayment for all these debts is around $250 per month.

By consolidating all these debts into a single loan over a longer term, the amount you may have to repay could be reduced to less than $160 per month.

How often can I make repayments on a debt consolidation loan?

With a debt consolidation loan it is usually possible to make payments weekly, fortnightly or monthly. The length of the debt consolidation loan is set for a repayment schedule which meets your needs.

You may be able to choose between 12 months and 7 years depending on the purpose and the amount of your consolidation loan.

Explain the difference between a variable rate and a fixed rate debt consolidation loan?

A variable rate debt consolidation loan allows you the flexibility of making extra repayments at any time and at no extra cost.

A fixed rate debt consolidation loan means your repayments are fixed for the duration of the loan.

Do I need security for my debt consolidation loan?

Usually a debt consolidation loan is an unsecured loan, so generally, no security is required by you.

What fees are involved in a debt consolidation loan?

Most debt consolidation loans have no ongoing fees and no early repayment fees. Though an establishment fee may be payable.

What do I need to know about applying for a debt consolidation loan?

When applying for a debt consolidation loan 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 within the debt consolidation loan
You are better off as a result of the solution you have chosen

Australian Debt Reduction may be able to assist you through our relationship with lenders with a debt consolidation loan.

Our staff are available to assist you immediately with any questions you may have about debt consolidation. Contact us on 1300 306 272


	Informative articles about reducing your debt and how a debt consolidation loan may be of assistance to you. » What is Debt Consolidation? » Why use Debt Consolidation? » Debt Consolidation vs The Rest » Tips to Reduce Your Debt » Reducing your Credit Card Debt?