How Debt Consolidation could help you before you fall behind.
If you’ve accumulated multiple debts such as credit cards, car loans, personal loans, buy now pay later services like Afterpay, and you’re finding it increasingly difficult to keep up with repayments, debt consolidation may provide a solution.
Many Australian homeowners don’t realise they may have enough equity in their property to consolidate several debts into a single, more manageable repayment. If you’re also feeling pressure on your loan repayments, acting early could significantly improve the options available to you.
Here’s the important thing to know: the best time to get help is before you miss a payment, not after.
Why timing matters
While your repayments are still up to date, your credit file is in good shape. Lenders see you as a stronger applicant, and you have more options to restructure your debt.
Once a payment is late, it can be recorded on your credit file. That can make it harder to refinance or consolidate, and it can limit the choices available to you.
Getting in early keeps more lender doors open.
You may have more equity than you think
Property values in many parts of Australia’s metro and key regional areas have jumped in recent years. Meanwhile, every repayment you’ve made on your home loan has reduced what you owe.
The gap between what your home is worth and what you owe is your Equity. Many homeowners are actually surprised by how much they’ve built up since they made their purchase.
That equity may allow you to roll your higher-interest debts – credit cards, personal loans, car loans, buy now/pay later services – into your home loan, leaving you with one regular repayment.
How debt consolidation works – Our 4 Simple Steps
1. Reach out early. Call us or book a FREE chat before you miss a payment. No judging, just an open conversation about where things are at and how we can help.
2. Get a fast home valuation. We arrange a valuation on your home as soon as possible, so we know we’re working with real numbers.
3. Find out your equity. We compare your home’s value with what you owe, including every debt you have, so nothing is missed.
4. Get one manageable repayment. We show you your options to consolidate into one repayment that suits your budget – then we handle the application and paperwork for you.
FREQUENTLY ASKED QUESTIONS ABOUT DEBT CONSOLIDATION
What is Debt Collection? Debt consolidation involves combining multiple debts, such as credit cards, personal loans, car finance and buy now pay later accounts, into a single loan with one regular repayment.
Can I consolidate debt into my home loan? In many cases, homeowners may be able to consolidate eligible debts into their home loan using available equity in their property. Eligibility depends on lender requirements and individual circumstances.
How much equity do I need for debt consolidation? The amount of equity required varies depending on the lender, your existing debts and your financial situation. A property valuation can help determine what options may be available.
Will debt consolidation reduce my repayments? Debt consolidation may lower monthly repayments by combining multiple debts into a single loan structure over a longer term. However, total interest costs should always be considered.
Why should I consolidate debt before missing a payment? Seeking advice before missing a repayment provides more options, as your credit history remains stronger and lenders may have greater flexibility available.
If you’re feeling the weight of your repayments, now is the time to act. The sooner we talk, the sooner we can help you get back in front.
Call 1300 693 973 – or book a quick FREE Chat via this link: BOOK A CHAT
This information is general in nature and does not consider your personal objectives, financial situation or needs. All lending is subject to lender assessment, terms, conditions and eligibility criteria. Fees and charges may apply. Pinnacle Home Loans Pty Ltd T/AS My Expert® Finance ABN 75 077 403 260. Australian Credit Licence: 389087.
