Personal Loans For Debt Consolidation

There is a misconception around that debt consolidation is about putting all your outstanding bills and loans into a single personal loan. While this can be one alternative, we find that 9 out of 10 applicants fail to qualify for it.

The reason is quite simple, unsecured personal loans require the applicant to have a clean credit history. Majority of inquiries we receive are from people with paid or unpaid defaults, arrears, judgments etc. Sometimes it is just a single missed phone bill that made it to your credit report. Once this happens you can pretty much forget about qualifying for an unsecured personal loan for debt consolidation.

It does not matter what you read on other Australian sites, what others claim to be able to do or what they simply allude to, you will not qualify for an unsecured personal loan if you have some history of bad credit.

You can however qualify for a loan secured by your car, your home, your boat etc.

You could also qualify for a debt agreement.

Finally you may choose to consider one of the on-line pay day lenders. Some will offer up to $4,000 to applicants with some paid defaults. It is a case-by-case decision.

These are short term loans and are not ideal for debt consolidation. The applicable interest rates are much higher than you find with a standard personal loan. They are however a good idea for meeting a small repayment obligation while waiting for your next pay.