Debt consolidation is the process of consolidating all of your debts like (credit cards, store cards, personal loan debt etc) into one manageable loan.
Debt Consolidation can be structured in several ways.
Firstly, you can apply for a Debt Consolidation loan. To be eligible for a Debt Consolidation loan, you will need to be able to service to loan repayments. We recommend that you approach a reputable financial institution or finance company. We recommend that you shop around for a low interest rate. A Debt Consolidation loan is similar to a personal loan and they are usually unsecured loans. We do not offer consolidation loans, however, we can assess your suitability free of charge.
If you have been refused a Debt Consolidation loan and you are insolvent, you may wish to consider a Debt Agreement or a Personal Insolvency Agreement. A Debt Agreement or a Personal Insolvency Agreement in effect consolidates unsecured debts, although it is not a consolidation loan and is a formal agreement with your creditors under the Bankruptcy Act so strict eligibility criteria apply. How it works is that instead of paying your individual creditors separately you would make a regular payment to us as your Debt Agreement Administrator or Trustee and we would distribute that money (less our fee) to your creditors. You must first qualify for a Debt Agreement or a Personal Insolvency Agreement. A Debt Agreement or a Personal Insolvency Agreement will effect your credit rating.
So if you are struggling to pay unsecured debt and you cannot get a Debt Consolidation Loan, call us today to see if you qualify for a Debt Agreement or a Personal Insolvency Agreement.
To get more detailed information on debt consolidation.
Debt Solutions
6/02/09