Wednesday, 27 March 2024
Debt agreement vs debt consolidation loan
Are you struggling to make repayments on your debts? While there are many options available to you, it’s important to know which may assist you to get your finances back on track. This month we’ve compared a Debt Agreement to a Debt Consolidation loan.
If you’re struggling financially and unable to repay your current debts, a debt agreement can be a good way to restructure your repayments into one monthly amount. With a debt agreement, you can combine your repayments without actually borrowing more money, unlike debt consolidation where you have to take out a loan.
Debt consolidation, on the other hand, involves taking out a new loan to consolidate your debts, meaning all of your debt is consolidated into one single repayment, at an agreed interest rate.
It’s important to know the pros and cons of each so you can make a decision that’s best for you. We’ve highlighted some of the key points in the infographic below.
Gavin holds an MBA and a Diploma in Financial Services (Financial Planning). He has been a driving force behind the growth of Credit Repair Australia since its inception in 2003.
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