Are There Loans for Bad Credit Debt Consolidation in Australia?

Many Australians suffer from accumulating debts. Sometimes, they can barely live paycheck to paycheck since a portion of their salary will be used to pay for their loans. 

Because of this, many try to seek short-term solutions, like quick loans.

If you want to lessen your debt problems, go for a debt consolidation loan. There are even loans for bad credit debt consolidation in Australia. It’s a strategy for managing debts by combining all of them in one single payment. 

If you want to apply for a debt consolidation loan, keep reading to know more.

What this article covers:

Why Apply for a Debt Consolidation Loan

bad credit debt consolidation australia

Here are the quite a few reasons as to why a debt consolidation loan can help you:

  • Convenience. Since you’re combining all of your existing debts into one loan, it’d be easier for you to manage it. You don’t have to worry about forgetting some of the loans getting over the due date. 
  • Fixed Term and Monthly Dues. Most debt consolidation loans will break down your monthly payment into a fixed amount. Also, you can have longer terms. Usually, you can pay your loan in 12, 24, or 36 months. 

If you have various cash loans that are almost due and can’t pay them, get a bad credit consolidation loan. Pay them all using the loan and only worry about paying it in a fixed and low monthly due.

  • Low Interest Rate. There are debt consolidation loans in Australia that offer low interest rates. Always double-check whether or not you can get a better interest rate with the debt consolidation loan than the loans you have right now. 

How to Get a Consolidation Loan With Bad Credit

Since you have a bad credit history, the best type of debt consolidation loan you can get is a secured one. It means that you’ll have to attach collateral to get the loan. 

First of all, let’s quickly check the two types of loans when it comes to collateral. 

Unsecured Loan

It’s a type of loan where you don’t need to attach collateral. 

Why? It’s because you’re only borrowing a small amount of money for a short repayment term, which is a low-risk factor for cash lenders. 

However, they’ll most likely check your credit score.

Secured Loan

This type of loan requires collateral, as mentioned above. The good thing is that you’ll get a high approval rate and can borrow a big amount with low interest rates. However, you’ll risk losing your collateral if you default on your loan. 

Also, you can’t just attach any kind of collateral. To avail of bad credit personal loans, it should pass the lender’s inspection, making sure it’s profitable to cover the debt you owe them. 

So, it’s obvious that getting a secured debt consolidation loan is the best for you since lenders won’t check your credit history. Basically, it won’t matter whether or not you have bad credit.

Where Can I Get a Bad Credit Consolidation Loan in Australia?

debt consolidation loan online

There are lots of lenders who offer bad credit consolidation loans in Australia. They even offer a bad credit holiday loan. Finding the right one for you might be a challenge, but you can rely on loan finders, like Orange Loans. 

We’ve partnered with thousands of lenders all over Australia to cater to various borrowers. Also, most of our secured loan lenders have low interest rates. Just make sure you have collateral to attach to your application. 

We even have lenders who can approve your loan right away if you need a 2,500 loan even with bad credit.

All you have to do is tell us how much you need to borrow, prepare the requirements, and fill out an online form. We’ll come back to you as soon as possible once we’ve found the right lender that can cater to your needs. 

How Can I Manage My Consolidation Loan?

Before you even apply for a consolidation loan, you must make sure you already have a plan for managing it. 

Also, don’t forget to only apply for one of the best loans for bad credit.

Total Your Existing Loans

Sum up every loan that you currently have to know how much you’ll need. 

Once done, seek a reliable lender that can offer you a consolidation loan with the amount you’re seeking. Make sure that it has a fair interest rate. 

Don’t commit to the first lender you’ll find. Find other lenders and compare them to see which would benefit you more.

Pay Your Debts Right Away

Once you have the money, immediately pay your current loans. Chances are, you’ll be tempted to spend it on other things if you’ll delay paying your current loans. 

Also, your existing loans will accrue interest the more you delay paying them. 

Set Up Auto-Debit Payments

instant debt consolidation loan

Once you’ve paid your existing loans, it’s a weight off your shoulders. However, don’t relax yet! You still have the responsibility to pay your current debt consolidation loan. 

To make the payment easier, have an auto-debit arrangement so that you won’t keep thinking about it.

Adjust Your Spending

Now that you’ve paid your accumulated loans through a debt consolidation loan, you need to avoid taking other loans in the future. 

To do this, you must adjust your spending habits. You need to prioritise your needs over your wants. 

Of course, you can always get the things you like so long as you have the budget for them. Just make sure not to rely on easy cash loans if you don’t have the means to repay them right away. You’ll be buried in debt eventually.

Conclusion

You can get out of your accumulating debts by seeking a consolidation loan. There are many lenders in Australia that can help, even those who have bad credit. Just make sure you have the proper collateral to attach since you’re getting a secured loan.

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