CONSOLIDATE

Debt Consolidation

Stuck on the debt merry-go-round? You have options

#FINANCIALFREEDOM

Is debt consolidation right for you?

Debt consolidation involves taking out one large debt to pay out several smaller debts, which would then be closed. Well advertised options for debt consolidation include unsecured personal loans.

This is where you have several short-term, high-interest debts (e.g. credit card debts, payday loans and overdue bills) that are combined into one loan. By taking out an unsecured personal loan you benefit from a lower interest rate and the convenience of one payment.

How it can help?

For example, Helen has three separate credit card debts totalling $9,000.00. Each card carries a different interest rate, and each payment is due at a different time. This makes it very difficult for her to keep track of her finances and ensure that repayments are paid on time.

She is charged an average interest rate of 19% per year, and has already repaid more than the value of the original debt. Deciding that enough is enough, Helen applies for a debt consolidation loan. She uses the money from the loan to pay off her credit debt. Helen now has a loan for $9,000.00 over 7 years, with an interest rate of 15.45% per year. Her monthly repayment has only gone down $4.00, but at least she will be debt-free in 7 years.

Debt Type Balance Repayment Interest Rate
Credit Card 1 Balance$3,000.00 Repayment$60.00 Interest Rate19.00%
Credit Card 2 Balance$2,000.00 Repayment$40.00 Interest Rate17.00%
Credit Card 3 Balance$4,000.00 Repayment$80.00 Interest Rate21.00%
Total Balance$9,000.00 Repayment$180.00 Interest Rate19.00%
Debt Consolidation Loan Balance$9,000.00 Repayment$175.95 Interest Rate15.45%
PROVEN SOLUTIONS

Benefits and disadvantages of debt consolidation loans

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Make one regular affordable repayment

Can't Freeze Interest & Fees

Although interest may be reduced, it is not frozen at 0% and still incurs fees.

Set Time

Debt free in a set time period

The loan is for a set number of years so Helen knows when she will become debt free.

Repayments may not change

Repayments aren’t drastically reduced

In the example above, the repayments have only reduced by $4/month. So payment pressures may remain.

Fees and charges

Fees and charges

Debt consolidations loans are often accompanied by fees and charges for the loan.

Reduced Interest Rate

Reduced interest rate

The interest rate may be lower than for the individual credit card debt. 

Hard to get

Can be hard to get

If you don’t have a good credit history then a debt consolidation loan may be hard to get approved for.

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There are other debt solutions available

Our debt solutions don’t include you needing to take out new loans. While debt consolidation loans are well-advertised options, they work like any other unsecured debt.

You might feel overwhelmed with your level of debt, but you do have options. Because we are not a lender, we can assess the suitability of several debt solutions if you are experiencing difficulty with your debts. We will work through your budget and if need be, can refer you to a financial counsellor.

If you have more than $8,000 in unsecured debt we may present you with some options available to you. Which may include:

HOW IT WORKS

The debt solution process in just 5 steps

We’ll even do 3 of them for you.

1

We'll assess your financial situation to work out what debt solution is right for you

2

We’ll assess your financial situation to work out what debt solution is right for you

3

We’ll take care of all necessary checks, negotiate with creditors and take the stress out of the paperwork

4

An agreement is reached with your creditors

5

You’ll make one regular payment

Debt Consolidation calculator

What debt do you have to consolidate?

Use our debt consolidation calculator below see how much you could save by consolidating all your existing debts into a single monthly repayment. You can also see how many years it will be until you are debt free based on different repayment levels and interest rates.

Use the Calculator
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Start living again without the stress of debt

Get in touch for a consultation. We are aware of just how much courage it takes to ask for help. We listen, we understand, we care and we do not judge.

FREQUENTLY ASKED QUESTIONS

A Couple Things People Ask

Should I consolidate debt?

Firstly, we will consider whether consolidating your debt is the right solution for you. It can give you the chance to combine your debts into one affordable repayment that is easier to manage. But a standard debt consolidation loan will still see you paying considerable interest on your debt. 

You can reduce high-interest loans such as credit cards and unsecured debts into a more affordable option by freezing interest and fees with our debt solutions. Saving you hundreds, if not thousands, per year in interest alone.

How do I know what debt solution is right for me?

Working your way through the options available regarding your debt situation can be overwhelming. Our experienced and understanding consultants can help get clarity on your options.

What debts can be consolidated?

Generally speaking, unsecured debts can be consolidated.

Unsecured debt is any type of debt that is not secured to an asset like a car or a house. This includes debts on some personal loans, tax bills and credit cards. Your house and car are likely to have security against them.

What will it cost?

Fees change depending on the option and the level of debt. We guarantee you will pay less, including all fees and charges with Beyond Debt than you will if you continued repaying under your current situation. Have a chat with one of our Debt Consultants and they will calculate what your total payments will be, including all fees and charges.