Three essential ways to consolidate debts

It is not uncommon for people to fall into the debt trap. Unmanageable debt can put one in an embarrassing situation. Figures reveal that Australia’s borrowing is at an all time high as compared to the last five years. People are desperately on the lookout for debt consolidation help. Debt negotiators in Australia provide expert assistance to overcome credit problems.

Debt consolidation loans
Debt Negotiators can help in any desperate financial difficulty. This includes unmanageable debt, loan repayments, bad credit history, mortgage credit card debts in Australia and others. They provide different options to consolidate debts. One of the most common is debt consolidation loans. These loans considerably help to reduce monthly repayments.

Home equity loans
Home equity loans allow the debtor to take a debt consolidation loan against the value of his home. Most of these loans have fixed terms and conditions. Their interest rates and amounts are all fixed. There is a substantial decrease in the interest rates.

Credit card balance transfers
Another way of consolidating debt is by using credit card balance transfers. This consolidates all the debts onto a low or no interest credit card. Once a balance transfer is initiated, a transfer fee has to be paid. For a certain period of time after this, no interest accumulates on the balance amount that has to be paid.
However once the balance transfer period ends, the interest on the card reverts back to the original amount. Therefore one has to have a good financial balance during this period to avoid getting to a new debt after the balance transfer period ends.

Settling Credit Card Debt with Proper Guidance

When a client of a credit card company does not repay the money that he has spent using the credit card, a credit card debt gets accrued. This occurs because of the interest and the penalties that the company charges the client for late or missed repayments. Research studies have shown that one of the biggest disadvantages of accumulated credit card debt is the likelihood of forgoing medical care, which may lead to many fatalities and emergencies. To help prevent such extreme situations, it is important to avail the services of credit card debt settlement experts. They help the client to negotiate with the creditors so that a settlement amount can be paid to resolve the debt. This amount is a lump sum that is less than the total amount owed. Each month, a specific amount of money has to be set aside in savings and transferred into different account, which will accumulate to form this lump sum. Ultimately, this can be used to pay the settlement amount that has been decided upon. Debt Negotiators is one of the most prestigious debt collection agencies in Melbourne. This firm also offers help with debt consolidation loans, which is the method of taking a single secured loan to pay off a number of unsecured loans. The interest rate in the former type is lower because an asset such as a property is pledged as collateral. In addition to the lower interest rate, also debt consolidation helps in securing a fixed interest rate as well as in giving the client the convenience of servicing a single loan instead of many loans.