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Debt consolidation loan comparison may seem confusing to a lot of us, but it really doesn’t need to be. In a nutshell, a debt consolidation loan comparison rate lets you compare different consolidation loans, and to get an idea of the total cost of the loan. Don’t worry, we’ll explain all of this in more depth. Learn more about how you could get a speedy loan today!
A comparison rate is a percentage figure that lets borrowers compare the costs of different loan products more easily. In other words, a comparison rate reduces the interest rate plus most of the fees and charges on a loan, down to a single percentage figure. Comparison rates are an easy way to weigh up different loan products.
Be aware, however, that comparison rates may not be representative of all the fees and charges on a loan. They are, essentially, just a rough guide to what you could expect to pay on your loan.
A debt consolidation loan is, simply, a loan that pays off all your other existing debts. Then, you will only have one, regular repayment to make, instead of multiple. Debt consolidation loans are a great way to reduce stress, make your budget more manageable, and even potentially save on your interest rate and fees.
Let’s put it another way. Let’s say, you have five existing debts on a variety of personal loans and credit cards. So, this means every month, you have five different repayments to remember on five different days. Now, we don’t know about you, but just the thought of that is stressing us out. What, then, is one to do?
Well, you could take out a debt consolidation loan, that will settle these other five debts. So, you pay out these other five debts early, and now you just have one repayment on the debt consolidation loan to make, every month. Pretty easy, right?
For a lot of people, searching online for different loans can get incredibly confusing. Especially when you start sorting through tables upon tables of different fees, charges and percentages. So, if you’re not particularly familiar with this type of financial jargon, it can be really difficult to know where you stand.
Luckily, things are made a little easier for us, with comparison rates. Put simply, a comparison rate reduces the interest rate plus most fees and charges relating to a loan to a single percentage figure. Essentially, the comparison rate allows you to get an idea of how much your loan will cost.
It is, however, also important to explore what features each loan offers, and how important these are for you. So, while comparison rates definitely take a lot of the hard work out of comparing loans, they aren’t the only thing to consider when you’re looking for a loan.
Well, this depends both on your personal and financial situation. In some cases, it may be cheaper for a borrower to settle their existing debts with a consolidation loan, as they may save on their overall fees and charges. There are, however, a few things you should consider before you start looking around and doing a debt consolidation loan comparison:
Always confirm that your consolidation loan will be cheaper to pay off than your existing debts. Additionally, make sure that you will be consistently able to afford the repayments on your new loan, to avoid going further into debt.
Some loans will require you to pay additional fees or charges if you wish to pay your loan off early. Always include early repayment fees and charges in your debt consolidation loan comparison. In short, if you are keen to pay your loan out early, make sure that even with these additional fees, debt consolidation is the right choice for you.
Before you do a debt consolidation loan comparison on different lenders, make sure they are all licensed by ASIC, and legally allowed to operate in Australia.
Due to the complex nature of debt consolidation loans, it is always a good idea to seek further advice. You should always consider independent legal and financial advice before taking out debt consolidation loan, who can help you find out if it is right for you.
Some consolidation loan providers will include a debt consolidation comparison calculator on their website. Essentially, you enter the details of your existing repayments, and they will calculate how much you may save.
Again, some lenders will have calculator tools on their websites. Otherwise, you may be able to go into a lender’s branch and ask them to go through a debt consolidation comparison with you.
Do you have multiple personal loan debts that you are struggling to keep track of? Well, you could consider doing a personal loan debt consolidation comparison. You may find it cheaper to consolidate your existing personal loan debts, into one, more manageable debt.
These days, you are able to search for lenders and do a debt consolidation comparison online. Therefore, you could do this from the comfort of your home, on the weekend, or even on your smartphone.
It can be difficult to compare various consolidation loans that have different interest rates and fees. This is why credit providers must give a debt consolidation loan comparison rate when they advertise their loans.
|Looking for Debt Consolidation Loans?||Amount||Nifty Approves|
|Debt Consolidation Loans Now||AUD ($)2,100||✔|
|Personal Loan Debt Consolidation Loan Today||AUD ($)2,200||✔|
|Fast Debt Consolidation Loans||AUD ($)4,000||✔|
Disclaimer: The above examples are for demonstrative purposes only. They do not, in any way, reflect the terms of your possible loan, or the amount you may be approved for.
Debt consolidation loans can, in certain situations, really ease the burden on your finances. Additionally, having more manageable repayments can ease stress, and allow you to focus on other aspects of your life.
So, to get the most out of your consolidation loan, and get your finances back on track, it may be a good idea to:
Consolidation loans may be helpful in certain situations, however, they may not suit everybody. There both benefits and drawbacks to consolidation loans:
The take home message is that there are many pros and cons of consolidation loans. If one is right for you or not will depend on many different factors and circumstances. As we have said earlier, we would always recommend seeking legal or financial advice.
If you’re thinking of conducting a debt consolidation loan comparison on different lenders, you may be concerned Centrelink benefits will stand in your way. However, some lenders will class regular Centrelink payments as a form of income.
To find out if a credit provider will accept Centrelink as a form of income, you will need to get in contact with them directly.
If your current credit provider provides debt consolidation loans, there are indeed some advantages. For instance, they may be more willing to accept your current application, as you are an existing customer.
They may, however, not be able to offer you the best deal. It is potentially a good idea to explore your other options before agreeing to anything.
In short, yes. Most lenders will offer loans to consolidate multiple credit card debts. This may, in the long run, allow you to pay less interest and have lower repayments. You will, however, need to consult the lender directly.
Nifty can offer personal loans ranging from $300 to $5,000, that can be used to consolidate debts.
It may only take a few minutes to apply for a Nifty personal loan, provided you have all relevant information at hand. If you complete your application during normal business hours, we will try to get a response back to you within 60-minutes of applying. Next, provided your application has been approved, you will receive a loan agreement. Once you have read through your loan agreement, and agree to the terms and conditions, sign and send it back.
Depending on when you send back your signed loan agreement, you could have the money in your account within 24-hours of approving the contract. Access to funds, however, is dependant on inter-bank transfer times.
If you have any questions regarding a Nifty personal loan, send us an email via the form on the contact us page. Alternatively, you can visit our FAQ section, or could give us a call directly on 1300 471 328.
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Since founding Nifty in 2016, Bell has continued to make waves within the local financial sector for his continued ambition and willingness to adopt emerging technologies.Read More
$300 - $2,000
* Not applicable. Small loans do not charge an annual interest rate.
** WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Different loans may include other payable fees and charges. All fees and charges will always be displayed on your loan contract.