Debt Consolidation
Debt Handling - Debt Consolidation – Pros and Cons
Many people find that over time they have accumulated more debt than they can repay. When that
happens, there is a reinforcing downward spiral. The inability to repay the debt leads to additional interest
charges and penalties, making it still harder to repay the amount owed.
One common suggestion for breaking this vicious circle is to employ debt consolidation. For
thousands, this has seemed like the way out, the way back to financial health. But there are pros and cons to debt
consolidation, no matter what form it takes. Being aware of those will help you decide if it is the salvation in
your particular circumstances.
First, what is 'debt consolidation'? At base, it's a simple proposition. Gather all your multiple
sources of debt into one debt and make a single payment every month to a single debtor.
But for that to be helpful several things have to take place at once. After all, whether you pay
$150 + $50 + $25 to three debtors or $225 to another it's the same amount. With online bill payment it isn't even
necessary these days to make out three checks. You aren't even saving on postage stamps!
In order for debt consolidation to be useful one or more of the following has to occur: (1)
either the total monthly payment has to decrease , or, (2) the net amount of interest has to decrease, or, (3) the
actual total debt has to go down as a result of consolidation. Which, if any, of these take place depends on the
specific debt consolidation plan you have planned.
In the ideal case, which rarely happens, all three take place. The most common scenario is that
the monthly payment is lowered. This has several advantages to the debt ridden. When the payment is lowered, you
have a much higher chance of being able to pay it consistently.
That helps prevent piling more debt (interest and late charges) onto existing debt. You also have
a much more relaxed frame of mind, knowing you can meet the monthly debt obligation without sacrificing other
needed items.
The risk is that if the payment is too low, some of the psychological factors that led to
excessive debt in the first place can rise again. Thinking you have lots to spare can cause you to relax too much
too soon. Continual worry is not healthy, commitment and concern are - if your goal is to become debt free.
Unfortunately, many plans lower that payment by extending the life of the loan long enough to
cover paying off the entire original amount owed. That leads to more interest paid over the long term. That's fair
to the lender, since you do owe the money. But some will settle for less if they have good reason to believe they
will actually get repaid. Try to negotiate a lower settlement, then consistently make the agreed on payments every
month.
Losing debt is like losing weight. Consistency, and a commitment to lower it, and keep it
lowered, is the key to long-term success.
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If you having trouble with your bills, not getting ahead, just living from day to day and wish
to get all your loans bunched together, we have non bank lenders waiting to answer you're
loan request.
Debt consolidation could be the answer
for that emergency operation, much needed car repairs, or those unexpected expenses.
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We are here to help, no harm in asking for a loan when times are tough, banks may say no, but
that's where we come in.
All enquiries are treated with utmost respect for your situation and we will get
back to you promptly.
Or
GE Money Debt Consolidation Loan
Juggling multiple repayments on credit cards, store cards and personal loans can be a hassle. By
rolling all your debts into a GE Money Debt Consolidation Loan, you’ll have just one loan and one regular
repayment to manage – so it’s easier to stay in control of your finances.
Simplify your finances
With a GE Money Debt Consolidation Loan, you make just one repayment a month. The repayment amount
is fixed for the life of the loan, making budgeting easy. And by setting a loan term that suits your budget, you
may even be able to reduce your monthly repayments*, leaving more money in your pocket.
Easy application and fast approval Applying for a GE Money Debt Consolidation Loan is easy. Simply click
here and fill in an online application. What could be easier?
Applynowand start simplifying your finances today.
Approved customers only. Conditions, fees and charges apply. *Please note that a longer loan
term will incur additional interest charges. Credit provided by GE Personal Finance Pty Ltd ABN 54 008 443
810, trading as GE Money.
GE Money Debt Consolidation Loan quick guide.
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Minimum age of applicant
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18 years
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Interest type
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Fixed for the life of the loan
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Interest rate
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From 14.49% p.a. Comparison rate 15.50%
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Minimum loan amount
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$3,000
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Maximum loan amount
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No maximum1
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Minimum loan term
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2 years
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Maximum loan term
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7 years
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Additional repayment
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Yes. At any time2
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Repayment frequency
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Weekly, fortnightly or monthly
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Payment method
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Direct Debit
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Establishment fee
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$250
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Loan service fee
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$10 monthly
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Optional loan protection insurance
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Available3
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1 Subject to lending and approval
criteria. 2 If you pay off your loan early, an early termination fee may apply. 3
Conditions apply.
Comparison rate based on a secured loan amount of $30,000 over 5 years. Warning: This comparison
rate is true only for the example given and may not include all fees and charges. Different terms, fees, or
other loan amounts may result in a different comparison rate.
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