5 Debt Consolidation Requirements

Debt consolidation loans are there when you need a bit of extra help to manage your finances and day to day cost of living. It's about taking credit card debts, personal loans and car loans and then putting them all in one place to make managing repayments a bit easier.

ASIC (the Australian Securities and Investment Commission) have a credit card debt clock, which looks at the average debt held by the everyday Australian. This fluctuates based on trends in each calendar month. At the time of writing, the total Australian credit card debt is over $32 billion.

That means the average Australian credit card holder has about $4,000 in credit card debt. This doesn't include personal loans, car loans or any other small debts that can build up over time.

If you're starting to feel like you may be paying too much interest, or you want to put all of your debts into one easily managed place, then debt consolidation could be the way to go.

Before you get started, there are a few things you'll need to do to make the process go smoothly. These should help to get your application completed as quickly as possible.

Check our loan calculator

First, check out our loan repayment calculator. This is a tool we've built to give you an idea of the amount and length of your loan. You can tweak the loan amount, the number of years and the repayment frequency to suit your needs.

Check your credit history

If you've had a credit card for a number of years or have had other debts like a personal or car loan then you'll have a credit history. If you've stayed up to date with repayments, then your credit history is probably fine.

It's important to make sure your credit history is accurate. Because a lender may review your credit history when you apply for a loan as part of their assessment. There are a number of agencies around Australia that can provide you with your credit report. This can be useful to reveal any potential issues before applying for a loan.

Make a list of what you owe

Having a complete list of your debts can really speed up your application. It will give you an idea of how much you would like to borrow. Remember to list things such as credit cards and other personal loans.

Details of your living expenses

Highlighting the things that you spend money on can go a long way to working out your loan repayment schedule. Consider things like rent, bills, groceries, gym membership, insurance premiums, car expenses, and anything else that gives a really good indication of what your cost of living is.

Your employment details

Payslips are perfect for detailing your employment history and how much you get paid. If you're self-employed or work freelance, then you can get the same information from your most recent tax return.

A debt consolidation loan is all about making things easier to manage, taking a number of debts and streamlining them into one loan.

If you would like to look at consolidating your debts, click the button below to get started. Or call today to speak to one of our loan specialists.