Is Debt Consolidation The Right Choice?

One of the challenges with debt is that it can take a long time to pay it off. This is particularly true when individuals in and around Victoria have significant high interest credit card debt and are only making minimum monthly payments. It can be overwhelming to see the statements that show the thousands of dollars in interest that you may be paying per year, with multiple years before the debt is finally closed.

A better option for many in Victoria is to take out a debt consolidation loan. This is a loan at a lower interest rate that allows you to pay off unsecured debt and make a single monthly payment to the lender. Typically, this type of loan reduces the time it will take to get out of debt and reduces the amount paid in interest over time.

Early in Debt

Getting a low interest rate on a debt consolidation loan is key to saving money through this debt relief process. Ideally, obtaining this type of loan needs to occur before missed payments, late payments, or partial payments negatively impact your credit score.

It is possible to get a consolidation loan even with a lower credit score, but there will be a higher interest rate. Recognizing a potential problem with repayment of credit and talking to our debt consultant can help you decide if this is the right option.

The goal is always to keep the debt consolidation loan as small as possible. Like any type of debt, this loan will have an impact on your credit score, but staying to the payment schedule can help rebuild your credit over time.

To find out if a consolidation loan is right for you, contact our team for a consultation.