Debt Consolidation
Consolidating your debts can help reduce the stress of juggling multiple debts and interest rates.
What is Debt Consolidation?
Paying off more than one debt at a time can be challenging, complicated and take a long time. Debt consolidation can help bring all your existing debts together into one loan, with one single repayment, offering you greater control of your financial situation.
One common way to do this is by taking out a new personal loan and using the funds to pay off your other existing debts. You can then pay back this new loan with a single set of repayments over a set term, giving you peace of mind that you know exactly when and how much your repayments will be.
How Debt Consolidation works?
Say, for example, you have two different credit cards with debts of $3000 and $4000 each, and a personal loan with a debt of $7000. Each of these debts will likely have a different interest rate, repayment amount, repayment schedule and due date, making it challenging to stay on top of them all.
To help simplify your financial situation, you can consolidate all these debts into one personal loan.
This allows you to have just one set of recurring repayments to make over a set term, with a single interest rate.
If the interest rate on the personal loan is lower than your existing debts, this can also help you get ahead in reducing your overall debt.
You can use a personal loan repayments calculator to work out what your repayments could be.
Benefits of Debt Consolidation
The key advantages are:
One single set of recurring repayments that are easier to manage
A clearer timeline of when you can be debt-free
Greater control of your budget and cash flow
Need help?
If the unexpected happens and you fall behind in paying what you owe, Services Australia can help you find out what services are available for you.
If you're an existing Broken Hill Bank customer and are facing financial difficulty, please read our Financial Hardship options or contact our team to discuss options.
A specialised loan that allows you to consolidate your various debts into one easy-to-manage repayment. With a focus on simplifying your financial commitments, this loan option provides a strategic solution to streamline and take control of your personal finances.
Broken Hill Bank’s Credit Crusher Loan
Important Information
Broken Hill Bank, a business name of The Broken Hill Community Credit Union Ltd ABN 12 087 650 762 Australian Credit Licence 238020. Credit eligibility criteria, terms and conditions, fees and charges apply. Full details are available on application.