Is a Debt Consolidation Home Loan an effective solution?

What is Debt Consolidation?
May 18, 2020
Do bad credit home loans reduce loan repayments?
May 18, 2020

Image representing aiming for the right debt consolidation solutionThe cause of debt problems is not always evident. Consequently, debt consolidation is not always the most suitable debt solution. Having said this, using mortgage security does offer the opportunity for lower overall interest rates and lower repayments. Nevertheless, there are many debt solutions available with each debt solutions effective for an appropriate debt issue.

Various debt solutions to fix debt or bad credit problems

  • Firstly, Debt Consolidation can be an effective solution to reduce overall payments.
  • Secondly, Debt negotiation is effective to reduce the amount owed on your debt balances.
  • Thirdly, informal payment arrangements; where reduced payments are negotiated with creditors.
  • Certainly, Part 9 debt agreements can be a form of bad credit that can be consolidated.
  • Also, Part 10 Insolvency where you don’t fit the guidelines for a Part 9 debt agreement.
  • Certainly, a full bankruptcy to resolve all your debt. However, a full bankruptcy can involve the sale of your assets to pay your creditors.
  • Finally, business liquidation or business wind up.

Any of the above debt solutions could be most appropriate for you. However, professional assessment and advice would be advisable as each solution has there own benefits, problems and costs.  In essence, no client has the same story or issue, so all solutions need to be considered. Being that, there is no one size fit all solution where a debt consolidation loan will solve all debt issues.