Advice From A Debt Consultant On Personal Lines Of Credit In Victoria

There are many different options for individuals in Victoria to consider when structuring a debt repayment plan. Each individual has specific situations and considerations, which is why working with an experienced, local debt consultant in Victoria provides the personalized support required.

Most consumers in the area are aware of the option to use credit card balance transfers to lower interest rates and pay off debt faster. They are also typically aware of the use of consolidation loans to pay off debt and make one monthly payment on a larger, lower-interest rate loan.

One option that is not often considered is the option to use a line of credit. As these are not right for everyone with debt in Victoria, working with a debt consultant if you are considering this option is important.

What is a Line of Credit?

A line of credit is an amount of money in the form of a loan that is available to qualified applicants. Unlike a traditional loan, there is no interest charged on a line of credit until it is used.

The payment for a line of credit is also based on the amount used in the form of principal and interest. The individual must make at least the minimum payment each month, but there is flexibility in repaying the line of credit to limit interest.

A line of credit, as your debt consultant will explain, is unsecured, or requires no collateral. It is not the same as a home equity line of credit, so you do not need to be a Victoria homeowner to qualify.

However, individuals must have a minimum credit score as set by the bank or financial institute. The interest on a personal line of credit, as well as the amount of the loan, will depend on the individual’s credit score.

If you are thinking of using a line of credit to repay debt, talk to our team at 866-690-3328 to consider your options.