Debt Consolidation and Repayment

Repaying your debt can be a hard task without the right advice. Debt Consolidation can involve assessing your current situation in terms of your current credit card, home loan or personal loan, and combining (refinancing) those debts in to a new lower interest loan to make it easier for you make repayments and pay down your debt.

Best Card for Debt Consolidation

The ANZ Low Rate MasterCard is the ideal credit card for cutting down your interest repayments. Take advantage of 0% p.a. on balances transferred for 6 months which then reverts to a low 12.49% p.a. on purchases.

• $58.00 annual fee
• 12.49% p.a. on purchases
• 20.74% p.a. on cash advances
• 0% p.a. for 6 months on balance transfers

Click here to read the ANZ Low Rate MasterCard Promotion terms and conditions

Best Card for Debt Consolidation

The Citibank Platinum Card offers a great rewards program, combined with a 4.9% balance transfer for life. The great thing is this card allows you to transfer non-Citibank personal loans, as well as existing credit card debt and store card balances.

• $250 annual fee
• 20.49% p.a. on purchases
• 20.99% p.a. on cash advances
• 4.9% p.a. for life on balance transfers

Click here to read the Citibank Platinum Card terms and conditions

As the average of the personal debt of each Australian has risen to $50,000 - twice the amount of a short five years ago - more and more people are struggling with debt consolidation and repayment. Yes, we certainly also do have more assets these days. But due to increased financial pressures most of us face, debt consolidation loans are being utilised at an all time high.

Overview of debt consolidation and repayments:

There are several ways with which you can consolidate your debts and we will look at them in this article. By understanding how debt consolidation works you will be able to make an informed decision about your financial future. First, let's look at.

Home Equity

Home equity is currently one of the most cost effective ways to pay back your existing debt. Provided you already have equity in your home, you could apply for an equity line rate loan which will draw money against your 'equity' (the portion of your home that has been paid off by you.)

Because of the all-time low interest rates we enjoy now, it is cheaper to draw money on a home loan than say with a credit card. Of course, you will need to factor in the time span here as well.

Debt consolidation loans

Debt consolidation loans are already very popular in the U.S. These loans are aimed at giving you the best deal to pay off several others loans, such as a student loan, a personal loan, or even credit card debt.

It is advisable to analyse your options thoroughly and always pay back more than necessary to reduce the debt much faster. Otherwise your debt will remain active for many years to come. Just by choosing the right product you can save thousands in the process. It certainly pays to shop around.

Credit card balance transfers

Credit card balance transfers allow you to choose a reduced interest rate credit card for a honeymoon period of between 6-months up to lifetime.

Just bear in mind that this is really only an option if you intend to pay off the card within the honeymoon period, otherwise you'll end up paying hefty interest rates which will increase your debt.

Debt consolidation and repayment with this method will require discipline from you.

Important tip ...

If you do look into debt consolidation and repayment then please remember that extra payments each month will help you to reduce your loan a lot faster. You'll save thousands of dollars in the process and come away debt-free a lot sooner.

We have written a number of articles covering the topic of Debt Consolidation and Repayment which will hopefully make your journey to becoming debt free faster and a lot easier:Debt Consolidation and Repayment

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Best Balance Transfer Credit Card Offer

The Bankwest Lite MasterCard is Australia's cheapest credit card offer, giving you the lowest MasterCard purchase rate of just 9.99% p.a. as well as a long balance transfer offer on your existing credit card balance at 1.99% p.a. for 12 months!






Click here to access the Bankwest Lite MasterCard terms & conditions.

Editor's Choice: Our Top Credit Cards




Credit Card	Card Details	Interest Rate (p.a.)	Cash Advance Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Interest free days (up to)
Bankwest Lite MasterCard	Editor's Choice: Cheapest Credit Card The lowest stress mastercard, with Australia's lowest MasterCard purchase rate of just 9.99% p.a.	9.99%	20.99%	1.99% for 12 months	$59	55
St George Vertigo	Editor's Choice: Best Bank Low 2.99% for 6 months (reverts to 11.99%) p.a. interest rate and balance transfer rate, from one of Australia's most respected banks.	2.99% for 6 months (reverts to 11.99%)	20.74%	2.99% for 6 months	$55	55
Coles Group Source MasterCard	The Coles Group Source MasterCard has no annual fee, a 0% p.a. balance transfer offer for 6 months, with a rewards program including savings on fuel and FlyBuys Points	19.74%	21.99%	0% for 6 months	$0	62
Citi Clear Platinum Visa	Editor's Choice: Low Interest An excellent low interest credit card offer with 11.49%interest on purchases and 0.99% for 6 months on balance transfers .	11.49%	20.99%	0.99% for 6 months	$49 (First Year, Save $50)	55
Bankwest Zero Platinum MasterCard	Editor's Choice: No Annual Fee Excellent introductory offer with a $0 annual fee for the life of the credit card and a 1.99% p.a. for 12 months on balance transfers	15.99%	15.99%	1.99% for 12 months	$0	55