At Westpac, we offer three ways to consolidate debt: A personal loan can be a good option to consolidate a range of debts.
The main benefit of a personal loan is that it has a fixed term.
The agency should be organized, send payments and statements on time and offer strong consumer education and support. The payment is usually around 2.5 percent of the total debt, though in hardship situations, there is some wiggle room. Why consolidate bills if you can't pay for basic expenses or if there are better alternatives?
You can stop the plan at any time, and you can also pay more -- and get out of debt faster -- when you have extra funds. You wouldn't, which is the reason consolidation begins with a counseling appointment where your entire financial situation is assessed.
You can use our Budget Planner to work out how much you can realistically afford to repay each month.
Or, it might make sense to consolidate high interest rate debts into one monthly payment with a lower interest rate.That means repayments are calculated so that at the end of the loan period your debt is cleared.By combining multiple debts into one easy to manage personal loan you can potentially: Read more about our personal loans.Both put the control in your hands, which can be good or bad, depending on how disciplined you are.Remember, you’ll need to not only put together a budget, but stick to it as well.