BankSA

• Debt consolidation loans up to $40,000
• Low-interest starting from 12.99%
• Repayment up to 7 years

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At Bank SA we strive to help Australians become debt free

When it comes to taking out a personal loan to consolidate debt you can opt for either a secured or unsecured loan and you can apply via BankSA’s online loan application.

Are your debts out of hand?

Sometimes our debts become too much of a financial burden for us and we can’t help but feel depressed every time payday comes.

Debt consolidation is simply the process of acquiring one loan to pay off all the smaller ones that you have and that is becoming a nuisance to manage.

Secured loan

This loan is exactly what the title means – a loan secured against an asset, typically your home. The interest rate is also lower to giving the consumer an affordable payment plan.

Unsecured loan

Unsecured loans have higher interest rates but are safer for those that don’t want to risk losing their assets.

Understanding debt consolidation

• Debt consolidation is when you roll several small debs into one bigger debt
• The new loan will always have a lengthier loan period as you are merging numerous debts
• Debts that can be consolidated are unsecured debts as well as personal loans, credit cards and store accounts
• Debt consolidation loans can be secured and unsecured
• Consolidation is not always the low-priced option and may sometimes cause your debt situation to deteriorate
• Since you are breaking credit contracts with several creditors you may be charged discredit fees, initial repayment forfeits and other charges for paying off the credit agreement former than settled

A debt consolidation loan does not mean that your debt will be erased instead it is the process of replacing multiple debts and accounts with a more manageable option. There are two main types of debt consolidation loans available.

Debt review consolidation

This process is slightly different as you are able to speak to a debt counsellor that will assess your current debt then negotiate with your creditors on your behalf to get you a lower interest rate and more easy to manage payment terms.  Each month you will pay the debt counsellor one monthly instalment and they will pay your creditors.

This way you will save money and only need to pay one easy to manage amount each month. This will help you budget more efficiently and make it easy for you to repay your debt faster.

A debt consolidation loan works in a similar manner by combining your debt into one easy to manage loan.

Does debt consolidation affect my credit score?

Applying for a debt consolidation loan will not have a negative impact on your credit record. If you apply for debt review this will reflect on your credit report and you will no longer have access to additional credit.

A debt consolidation loan is seen as a higher risk loan because of your past credit history. Lenders will charge a higher interest rate but you will benefit from lower monthly instalments. To qualify for a debt consolidation loan you will need to show your ability to afford the payments or in some cases provide an item of collateral as security against the loan.

BankSA is a trusted & reliable provider of debt consolidation loans

In our review, BankSA adheres to the compliance criteria in accordance with the National Consumer Protection Act, where the granting the loan will not cause financial distress to the consumer.

✅ BankSA is a registered credit provider in Australia: ACL 233714