How Debt Consolidation in Victoria Affects Your Finances

If you’re considering consolidation loans for bad credit or other forms of debt relief in Victoria, you likely have many questions. Most people want to know how debt consolidation impacts their finances, including their credit rating. Understanding what to expect after debt relief will help you determine if it’s the right step for you.

Credit Rating Changes

Your credit rating is one of your most significant concerns when considering debt relief in Victoria. Most people know that bankruptcy harms your credit for years, making it more challenging to secure loans or rebuild your credit. Debt consolidation, however, makes it easier to improve your credit rating as you pay down your debts and start working toward a better financial future.

Surrendering Credit Cards

Individuals often struggle with surrendering their credit cards during debt consolidation in Victoria. This step is essential to ensure you won’t continue adding debt while you pay down the old debt. Other bills that will be included in your debt relief program include household bills, personal loans, payday loans, and more. You can’t choose which debts are included.

Applying for New Credit

Many consumers want to start rebuilding their credit as soon as possible. As long as you understand responsible credit use, you can apply for new small loans and secured credit cards during debt consolidation in Victoria. However, you should choose wisely and not overextend yourself.

Contact us to schedule a consultation with our team to discuss your options for debt relief and how it will impact your life.