Consolidating your debt
Being in debt can be a big worry for you and your family. If you want to get on top of your debts and get better control over your finances there are a few important steps to take.
Step 1: Take a good look at your current financial situation
Arm yourself with as much information about your debts as possible. Find out:
How much do you owe on each debt?
What is the total amount you owe?
How much interest are you paying for each debt?
How long have you got to pay them off?
What are the extra fees and charges you’re paying because you have multiple debts?
If you want to take a more in-depth look at your finances, learn how to create a budget to see how much you spend and where your money goes. If you’re a CommBank customer and experiencing difficulty making your loan or credit card repayments, get in touch with our Customer Assist Team.
Step 2: Consider the advantages of consolidating your debt
Having a number of debts to worry about each month can be a burden and makes budgeting difficult. One of the most popular ways to consolidate debts is to take out a Personal Loan - it could be a much more manageable and affordable option for you:
You could save money because the interest rate and monthly fees on a Personal Loan are usually lower than many credit cards, store cards and other lending schemes.
It gives you flexibility. You could pay off your debts sooner, or if you need more funds now, you could choose a longer term period that minimises your monthly repayment.
It gives you a set repayment plan to help you get on top of your debt. Many credit cards and store cards only require a small repayment each month, which will take much longer to repay and cost you more interest in the long term.
You have just one single repayment to worry about, saving you time and hassles and hopefully putting an end to late payment fees.
If you choose a fixed interest rate Personal Loan, you’ll know the exact repayment amount you need to pay each month for the life of the loan.
If you choose a variable rate Personal Loan you’ll be able to make extra repayments without a fee, allowing you to pay your loan off sooner.
Consolidating your debts could also help improve your credit rating.
Step 3: Select the loan to suit your needs
Once you’ve worked out how much you need to borrow to consolidate your debts, try our calculator to see how much your repayments will be. If you need some guidance on which Personal Loan might best suit your needs.