Debt Negotiation or Debt Consolidation May Reduce The Impact Of Soaring Interest Rates

The average credit card rate rate is at 20%, and the average new card interest rate is poised to soar again this during this period of soaring interest rates. Fortunately, there are options that Australians can consider to free up cash every month and pay the debt off.

Debt Consolidation Loans

While the interest rates for unsecured loans are rising these loans generally offer a fixed rate and cover you from interest rate hikes that may impact your credit card debt. You’ll need a high credit score and a good debt- to- income rate to gain an unsecured debt consolidation loan without collateral. Lenders are taking high losses with these loans, so they want to insure you can pay them back. Try your original bank, credit union, or an online platform to shop multiple lenders with one operation.

Debt Management

If obtaining a debt consolidation loan is not an option due to a poor credit score or debt-to-income ratio, a debt management program can reduce most credit card interest rates without needing a new loan. The dent manager will receive one monthly payment from you and distribute it to your enrolled creditors. This is a hardship program, so you will be unable to make further charges on your credit cards, and your credit standing could be negatively impacted. However, you may save enough money every month that you will no longer need to rely on credit cards and be able to pay them off in around five years.

Debt Relief with Debt Negotiation

Debt relief using debt negotiation or debt settlement is a popular option to resolve unsecured debts. It is a hardship program and will not  impact your credit score unless you are already delinquent with debts. However, you may be able to have a program payment that is less than half compared minimum payments and resolve your debt in as little as 24 to 48 months. Once you have resolved the debt, you will have an improved debt-to-income ratio, and you can quickly start rebuilding your credit. Your success with this program depends on the quality of your services. Be sure to research the company and understand the fees charged.

Visit for a free phone or office consultation with an Australian Debt Specialist