Sunday, January 16, 2005

How to Make Debt Consolidation Work

Information on Debt Consolidation Loans in Australia:

"How to make Debt Consolidation work for you

A winning strategy is to take most of your money that has been freed up and make extra repayments on your new loan. Try to pay down the extended part of your loan in less time than you would have done previously. This should be possible because you are paying a lower interest rate.

Also cutting up your credit cards and closing the accounts removes the temptation to get into more debt. Instead of Credit Cards, put some cash in a term or savings account for emergencies.

Tips and strategies

Get rid of Credit Cards. Cut them up and close the accounts, or live to regret it! Banks in Australia love to hand out Credit Cards, and if you already have one, they try to get you to increase the limit. Don't do it!

Have a Cash nest egg for emergencies. Increase the new repayment amounts so that the non housing components are paid off as per their original schedule or sooner.

More information on debt consolidation strategies... "