True debt consolidation programs in Australia can be tricky to find.
There are companies advertising debt consolidation services that are masked Part 9 bankruptcies and they are not the only debt consolidation programs available.
These companies promise to stop the phone from ringing….
Unfortunately, they don’t tell you that they’re actually putting you into a part 9 bankruptcy that stays on your credit report for 7 years.
This is not a true debt consolidation program and can ruin your chances for finance for years to come.
Want to apply for debt consolidation or credit repair? Watch this short video on HOW TO!!
So what is a real debt consolidation program and where can you find one?
Follow these 4 simple steps to find a trustworthy debt consolidation program:
- Get a referral
Do you have a trusted financial advisor, or maybe finance broker? Many professionals have a hub of experts that they can refer you to free of charge.
If you don’t have a financial advisor, find one in your local area, and ask them about a debt consolidation program.
To be referred by someone you trust or a trusted professional in your area is a lot safer than calling any company you find on the internet.
- Do your research before you apply
Before you sign up for any debt consolidation program do some research online to find out what services are out there.
A great place to research about finance is at www.moneysmart.gov.au, a government website that offers information on consolidating and refinancing debts.
This website also offers other great information on budgeting and other areas of finance.
Contact our team today to find out about our debt consolidation program.
- Be wary of TV ads offering to stop the phone ringing
Case Study: Belle had $10,000 in personal debt and had just separated from her husband. However, she had a great job and could still afford rent, she just wanted to consolidate all her debts.
Belle saw an ad on TCV offering to consolidate her debts.
She applied online and was told that she would be put into a 4 year payment plan.
Belle thought this was great, and submitted her application.
However, what Belle didn’t realise was that the payment plan was actually a Part 9 debt agreement.
This is a form of bankruptcy.
For $10,000, Belle now had a bad credit rating for the next 7 years and could not borrow any money.
When she met her 2nd husband, they couldn’t buy a home and had to stick to renting.
Be careful of Part 9 debt agreements that are disguised as payment plans.
A true debt consolidation program will not any form of bankruptcy.
- Look at your budget with your family
Often a debt consolidation program can be started at home.
We suggest sitting at home with your family and writing out your budget so you can work out a reduction of expenses.
Maybe you can decrease your spend on entertainment?
Or transfer a credit card to a no interest card to start paying it off sooner?
Follow these steps above, get some professional advice from your trusted financial advisor, and we hope you find the best debt consolidation program for you and your family.
Please send us an email if you would like more information.
Or call or team of credit repair experts today at 1300 43 65 69.