Struggling to keep up with multiple debt repayments?
It's easy for things to get out of hand. You get a credit card, then a store card, a high interest car loan the dealership talked you into taking, then all of a sudden you have multiple debt repayments each month which are hard to keep track of. Consolidating into 1 personal loan doesn't only make things easier for you, it can save you money in the long run by potentially reducing fees and interest you're currently paying.
If you've ever looked at engagement rings, or planned a wedding, you know very well costs can add up astonishingly quick. Whatever you budget for at the start is almost always exceeded. Most of us hope to only get married once in our lifetime, so we want the day to be special, as well as the honeymoon of course. By taking out a personal loan you won't have to compromise on your special day, you can have it all.
Need a holiday but don't have the savings?
Timing is everything in the world we live in. Between juggling your annual leave entitlements, kids’ school holidays, and seasonal fluctuations in holiday pricing, you may only get a limited window of opportunity each year to take the family away on a much needed holiday. Most Australian families don’t have the savings to pay for a holiday when the opportunity suddenly presents itself. You could be left facing some tough decisions: sacrificing Christmas presents for the kids could be an option, or you could miss out on the opportunity all together.
Renovating or landscaping around the house?
Your house is your home, and you want it to be perfect. When you wake up there each day, you need everything to be just the way you want it to be or you will constantly have that feeling inside that things could be better. Why wait? Redrawing on your mortgage can be a very time consuming, and often difficult process. Especially if you've just moved in, it may not even be an option at all. Taking out a personal loan means you live life without compromise, and you can go home each day to your dream home you've always pictured.
We hear it all the time. When people shop around for finance, they call up a range of brokers and finance companies and ask, “What is your rate?”
Although interest rates are an important factor when it comes to comparing loans, it is only one of many factors.
The lowest interest rate isn’t always the best deal. All lenders have very different fee structures. Some lenders offer incredibly low rates but will have high set up fees. Some lenders may have low set up fees but high monthly account keeping fees. Some lenders may have next to no set up or ongoing fees, but may have astonishingly high early exit fees.
The important thing when comparing is to look at the overall package. You need to understand your budget, and requirements, and work backwards from there to ensure that what you’re looking at, is best suited to you. It won’t make sense to go for the lowest cost loan, that has extraordinary early exit charges, if you only plan on having the loan for a short time and then paying out early
If you don’t plan on paying out the loan early, then the main thing for you to focus on is your bottom line. Forget about rate, forget about fees, focus on your monthly repayment including everything. This will let you know exactly how much money will be coming out of your bank, and will let you know exactly what your cost of loan is.
At Credit Capital, with access to more than 25 of Australia’s major finance lenders, we compare more so you save more.
We are independent and privately owned, so give unbiased advice when it comes to getting you the best deal.
We work for a flat service fee which is included within the set up costs of your loan, and the fee doesn’t change if we attain a higher or lower interest rate for you.
This makes it very easy for you to compare our repayment with others to see which deal is best for you.
You don’t pay anything up front, and the fee is only applied if you get a loan through us, meaning if we don’t earn your business, we don’t get paid. This makes it in our best interest to get you the best deal, every time, so we can earn your business for life.
It’s a saying you’ve probably heard so many times by now that it’s almost lost all meaning.
But when it comes to finance, the interest rate the lender applies varies based on the risk of the application.
The higher risk the application, the more likely you are to default, or the less likely the lender will be able to recover their loss if they have to repossess the car, the more the lender has to charge to offset their risk.
To lower your interest rate you need to lower your risk. There are many factors that lenders look at when calculating the risk of your application.
How long have you been in your job? Are you full time employed? Part time? or casual?
Residential history is important as well. Whether you’re renting, boarding, have a mortgage, or own your property outright, are all taken into account by the lender to calculate your risk.
Some factors you won’t have much control over, there are some things though that you can control.
If you’re unsure whether your application will be suitable for approval or not, talk to one of our finance professionals today.
For no cost, and with no obligation, we can do a full assessment of your circumstances and statements, and give accurate advice regarding whether you’re in a position for a finance approval, or if not, we provide a clear list of instructions of what needs to be done on your end so we can help you out in the near future.
We ensure every time, that your application is presented at the best time, to ensure you will always get the best result and best deal.
It may sound simple, but the less you borrow, the lower your repayments will be. When applying for a personal loan, don’t pick a round figure that will be large enough to cover what you need, do the work up front to work out the exact amount you need so your loan value, and repayments, will be reduced from day 1.
Many lenders these days will allow you to finance personal loans up to 7 years. The longer period you extend the finance for, the lower your repayments will be. This can be a great option if you don’t want the repayment to have as much of an impact on your budget, however a longer term can also mean you will pay more in interest.
Speak to one of our professional consultants today to get free general advice on what might work best for you.
Refer to Chapter 6 regarding how to lower your risk. By lowering your risk you could be entitled to a lower interest rate meaning your repayments are reduced throughout the loan.
If you’re applying for a personal loan, and you already have existing debt, whether it be a credit card, or a car loan, by increasing your personal loan and consolidating your additional debt, you could be significantly reducing your overall monthly loan payments.
Not only will the monthly payments be lower across all accounts, but managing 1 repayment as opposed to multiple will make things much easier as well. The thing to consider when looking at this option, is whether or not you will be increasing your cost of debt by doing so.
You might be consolidating a low interest car loan with 2 years left to go, into a personal loan with a higher interest rate that will run for a 5 year term. It may be beneficial for you to do so given your repayments will be reduced, however it is important to understand that you will be increasing your interest expense on your existing car loan in this example.
It is up to you to determine what is best for you, our consultants are here however to help you crunch numbers across all scenarios to assist you making that decision.
Before approaching any lenders, the most important thing for you to know is how much you can afford each month. This is important so when ou are presented with a quote, you will be able to see quite quickly whether or not the product is suitable to your needs.
Whether you’re looking to consolidate debt, or needing funds for home renovations, everyone has different wants and needs when it comes to taking out finance. The more you can let us know about what you want or what you need, the better we are able to fulfil your dream.
When it comes to taking out finance, there is no such thing as too much documentation. We will always strive to make the process as smooth as possible with the minimum amount of documentation, however, the more prepared you are, the quicker we can make the process for you. Be prepared with IDs, residential and employment histories, payslips, or tax returns and profit and loss statements if you’re self-employed. The more prepared you are the more efficient we are.
Once you know the above, enquire online or call us directly and we can help you with the rest. If there’s anything above you need assistance with, not to worry, our devoted team can answer all your questions and find the deal that best suits your requirements. We can guide you along the way no matter how early, or late, in the process you are. We put your mind at ease and make finding the best deal easy from start to finish.