If you are considering a debt consolidation loan to consolidate credit card debt we highly recommend that you consider the legal implications of a debt consolidation loan before you apply.
Carefully consider the legal implications
If you fall into arrears with a debt consolidation loan and you can no longer service the loan (ie you cannot afford the repayments or the lender demands full repayment because the loan has fallen into arrears) you may not be eligible for other debt relief solutions. Typically lenders will not consider proposals for other debt relief solutions if you have recently taken out a debt consolidation loan which has later fallen into arrears.
We therefore highly recommend that you carefully prepare your budget to make sure you are confident you will be able to afford the repayments. If you are struggling with debt before you apply for a debt consolidation loan, we recommend that also consider other debt relief options which may be more appropriate.
My debt consolidation application was refused – what do I do now?
If you have applied for a debt consolidation loan but your application has been refused and you are struggling with debt, you may wish to consider your other options.
We specialise in helping people solve their debt problems and provide free and professional advice to Australians. We can help you select the most suitable solution to solve your debt problems. The most successful types of debt solutions include:
- Equity release
- Informal arrangement
- Financial hardship
- Strict budgeting
- Debt agreement
- Personal insolvency agreement
- Bankruptcy
Selecting the appropriate product will depend on your financial circumstances.
Debt Consolidation Get the Facts
4/06/10