Debt Consolidation

What is debt consolidation?

Debt consolidation refers to the process of taking out a new loan to pay off outstanding loans and debts. Consolidating your debts can help ensure that your credit score and history remain good. You are also likely to win the trust of your creditors because they will view you as a trustworthy person. Additionally, it offers some form of debt relief.

Is it smart to consolidate debt?

Understanding some of the benefits of debt consolidation can be key to appreciating why it may be one of the smartest moves you can make to manage your finances.

Turns multiple payments into a single payment 

One of the things that may lead to late payments or defaulting on a loan is having to remember everyone you owe. Sometimes it is just not easy to remember when you should pay for this or that. Debt consolidation turns all your outstanding payments into one single payment, which takes away the need for you to remember dates. Making a single payment also gives you peace of mind and helps you save energy and time.

Helps with your credit score 

Your credit score is one of the most important things that financial institutions look at when considering your creditworthiness. A poor credit score may lead to high-interest rates, high interest while a good credit score may lead to better interest rates. It is also easier for you to take out unsecured loans if your credit score is on a positive bearing. By consolidating your debts, you can beat deadlines in terms of repayments, which effectively helps improve your overall credit score.

Helps with interest rates 

Loans often attract interest rates which is the amount of money you pay over and above the amount you received. It is common for people who take advantage of debt consolidation to get better or lower interest rates on their loans. That is because they do not need to make their repayments in installations. Instead, they can settle their outstanding loans in one go, which often makes it possible for them to negotiate for lower interest rates.

Saves you money 

Unpaid Credit card debts often accumulate interest, and this can end up costing you a lot of money. Debt consolidation helps you pay off all outstanding loans and debts, and this means you do not have to worry about paying extra charges or losing money in the form of accumulated interest.

How can you get a loan for debt consolidation?

The process of getting a loan for debt consolidation largely depends on where you decide to borrow money from. Below are some of the things you can expect to go through when taking out a loan from online money lenders.

Eligibility for loans 

One of the most important things for you to do before submitting a loan application is to confirm if you meet the minimum eligibility requirements. Ozzie Loans requires that you must have attained the age of 18, have a stable income and be a permanent resident of Australia.

The registration process

If you meet the eligibility criteria, you can go ahead and download the Ozzie Loans app through your smart device and install it. Alternatively, you can go online and register at the Ozzie Loans website. Some of the information you may have to give during registration includes your legal name, age, employment status and address. This helps the institution determine if you are eligible to receive a loan. 

Once registered, you are encouraged to read through as much information as you can. This will help you understand how Ozzie Loans works. Once you are satisfied with the information, you can go ahead and apply for a personal loan for debt consolidation online. It is important for you to fill all the required fields and give accurate and factual information.

Get loan approval

The online lender will use the information you share to rub a quick background check. This will help the institution determine what kind of borrower you are. Afterwards, the institution will set a minimum and maximum loan limit for you depending on the analysis it carries out.

You can then calculate the amount you need using a debt consolidation calculator and then request a loan amount which you can expect to receive on that same day. Of course, there are times when you may have to wait for up to 24 hours before you get your money. This often happens because of the bank that is receiving the money that you have borrowed.