why you should consider a personal loan for debt consolidation
10 January 2011
With store loans, store credit and high interest rate credit cards making it easy to buy what we want now, it's little wonder people are drowning in debt. If any of the following scenarios are making it hard for you to manage your finances, it might be time to consider taking out a personal loan for debt consolidation.
1. You have multiple loans with multiple lenders
Most people have a variety of credit cards, store cards and loans spread over multiple institutions. Each of these repayments is likely to be due on different days which can make keeping track of them very difficult. A personal loan could help you by bundling your debt into one loan with one provider.
2. You're drowning in high interest loans
Credit card companies and retailers generally charge high interest rates on loans. Taking out an unsecured personal loan could help ease this burden. Your loan will often be at a lower rate than most store and credit cards.
3. You find it difficult to pay creditors on time
One of the big downfalls of paying off multiple debts to different creditors is you need to be really organised. Lots of different debts mean lots of different due dates and amounts, so if you're not on top of things it's very easy to fall behind. A personal loan lets you make repayments when it's convenient for you - monthly, fortnightly or even weekly.
4. You're getting calls or letters from collection agencie
Getting calls from debt collectors is stressful, especially if you've fallen behind in your payments and you don't have the money to catch up. If you're getting calls and letters from collection agencies, it's a good sign that you need to get your debts settled. A personal loan could help by paying off all your existing debts and consolidating it into one debt (otherwise known as 'debt consolidation').
If you're having difficulty with debt, take a good, hard look at your financial situation and make an informed decision about your next step. If you're concerned about the level of debt you have - and if you're struggling to pay it off - it's important that you contact your financial institution for assistance.
Bankwest responsible lending policy:
"Whilst most of our customers are able to pay their debts comfortably, in the current environment there is increased pressure on some household budgets. Our responsible lending policy means we have robust and sensible lending criteria to ensure we only lend to those customers who have the capacity to repay their debt. Where a customer subsequently experiences financial difficulty we have a range of options to assist them."