Misconceptions of debt consolidation?May 18, 2020
What happens if my debt agreement is terminated?May 20, 2020
Credit Cards used for general expenses
More and more often these days, we are seeing clients needing credit card debt consolidation. Certainly, credit cards are useful however, they can also be a problem. As a matter of fact, we see an over-dependence on credit cards to pay for high household expenditure.
New lending policies with credit card debt
New lending policies are being released weekly. As such, one of the recent changes is related to credit card debt and credit card payments.
Previous payment calculations were calculated at 2.5-3% of the outstanding balance. Accordingly, this amount will increase to allow the credit card to be paid off within three years. Consequently, reducing your borrowing power on bad credit home loans finance.
Paying off credit card debt
There are some simple ways to pay off credit card
- Initially, increasing payments above the minimum required to allow paying off within six months.
- Secondly, funds transfer to a 0% interest credit card. Then, 100% of your payments are applied to reduce the balance.
- Thirdly, consolidate credit card debt into a lower interest loan with a 1, 2, 3 or even 4 or 5-year terms.
- Finally, debt consolidation home loan to pay the credit card debt.
How do I know my credit cards need consolidation?
- Firstly, credit card balances are consistently above the card limit.
- Secondly, you can see you will be missing payments shortly.
- Your credit balances are increasing even if you are making payments.
- Also, you are using credit cards to top up your monthly budget.
- Finally, your account is in collections.
If you experience any of these issues, please call Loan Saver on 1300 796 850. In this situation, we will advise if a debt consolidation home loan is the best solution for you