Bad credit and debt can be caused by several reasons. Consequently, there are many solutions for bad debt including debt consolidation. Consequently, an assessment of your circumstances needs to be conducted to identify the cause and solutions available.
The major issue causing bad credit
Firstly, the loss of income results in a reduced capacity to make payments to debts. Therefore, there would several objectives to achieve an effective solution:
Firstly, a reduction in the overall payments may fix the problem. As a result by seeking a competitive low-interest rate bad credit home loan.
However, lenders serviceability will need to be confirmed to ensure you would meet their income requirements.
Certainly, debt consolidation may protect your credit file and avoid escalation to bad credit.
Other issues causing bad credit
Secondly, personal or family sickness is a complicated issue where you may be more suited to applying for hardship. However, if the issues are in the past and you are left with the debt you may qualify for debt consolidation to clear the debt.
Expenditure – expenditure and spending were reviewed in the royal commission into the banking industry. As a result, all consumer loans are assessed for expenditure. therefore, a high expenditure would not eliminate you from obtaining finance. However, your monthly spend would be included in your borrowing capacity assessment.
Gambling and mental illness can cause debt problems. Consequently, the only way to obtain finance to consolidate gambling debt is to show no gambling for a minimum of 3 months. therefore, without time to show no gambling, there is no ability to obtain finance. However, gambling is viewed as entertainment. Therefore, if your expenditure is within your income limits then you may still obtain finance.
Divorce or family issues; Divorce is one of the most traumatic events a family can experience. Consequently, the effects can be financially devastating for all parties.Divorce considerations:
Firstly, divorce is very expensive. For the same reason, legal fees can amount to tens of thousands of dollars. As a result, debt consolidation can be used to finalise legal bills.
Secondly, divorce can take a long time to negotiate with an ex-partner. Consequently, a divorce settlement may mean debt consolidation is not the immediate solution. However, we are happy to discuss your situation as we have assisted many couples through their change in marital status.
There is a range of bad credit solutions for each issue. Not all bad credit debt issues require a debt consolidation home loan solution.