Finding hard to manage your finances
There can be lots of things such as credit card bills, small loans, unexpected expenses that can surprise you if you are not ready for them. If you are struggling to manage your debts, it may sound like a good idea to pay someone to fix your credit problems and consolidate all your loans into one loan. At Empower Finance we explain to our customers what to consider before you refinance your loans so that there are no surprises later on and how you can get help for free. Yes you are right, for free.
At Empower Finance our loans are tailored to our customer’s needs, lifestyle and budget. You’re in control with a fixed interest rate, so you’ll always know what your repayments are. It will make your life so much easier.
Consolidating or refinancing loans can work for some people it means they will pay less in fees and interest. For others, it may only be a short-term fix, especially if they can't meet the repayments on the new loan. So it really depends on an individual circumstances and we provide you with personalised financial solutions so that we can provide the best to our customers. Before you refinance or spend money paying a company to help you with your debts, there are things you can do.Check the debt consolidation loan is right for you
- Compare the interest rate, fees and charges
Before you take a new loan to consolidate your debts, make sure your new interest rate, including fees and costs, is much lower than what you're paying on all the debts you are consolidating. If you end up paying higher interest, then you're losing money and making your problem worse. Debt consolidation will not be a good choice for you in that case.
- Check the loan term
Even if the interest rate is lower on the new loan, paying off a short-term debt (like a credit card or personal loan) over a very long term means you will still pay more in interest and fees in the long run. Beware of the term of loans that you are offered before consolidation.
- Check they are licensed
If you are planning to use a debt consolidation company or credit provider, make sure they are licensed by ASIC. There are Credit providers and brokers that are not licensed (or are not an authorised representative of someone who is licensed) are operating illegally in Australia. So beware of them and work with an authorised company.
Call Empower Financial at 0431 381 596 to discuss it further with our authorised consultants.