Why Debt Consolidation in Victoria Is Better Than Bankruptcy
If you think bankruptcy is your only way out of debt, you need to know that you have other options.
Debt consolidation is often a better debt relief solution than filing for bankruptcy. Although consolidation loans for bad credit may be challenging to find it doesn’t mean this isn’t a viable option. The reality is debt consolidation in Victoria is often a better debt relief solution than filing for bankruptcy for several reasons.
Reduce Your Credit Utilization Ratio
Your credit utilization ratio plays a significant role in your credit score. You are seen as a financial risk if you use too much of your credit or have a substantial amount of available credit. Combining your debts into a consolidated lump sum will reduce this ratio and improve your credit score.
Timely Payments Improve Your Score
In addition to improving your credit utilization ratio, making payments to your debt relief program in Victoria will positively affect your credit score. Timely payments are one of the best ways to manage your credit score. Since bankruptcy wipes your slate clean, you won’t have payments to make that will improve your score.
Easier to Track
Debt consolidation in Victoria makes it easier to track your debts and make your payments. You won’t have to juggle multiple minimum payments with varying due dates, increasing the risk of missing a payment. Everything is consolidated into one low monthly payment, often with a reduced interest rate to help you save more money.
Want to learn more about this viable debt relief option?
Contact us today to discuss your debt consolidation options in Victoria.