Whilst lenders express an “appetite” for new loan business, Debt Consolidation Loans are on the increase.
Key points to note when seeking a debt consolidation loan include :-
- If credit cards are included with the loan, most lenders would accept up to 4 credit cards. Non-major specialist lenders may accept up to 6.
- What are the savings for the applicant should a debt consolidation loan be approved and will the savings be applied to the new loan?
When seeking a refinance of existing facilities, including consumer debts (i.e. credit cards, personal loans and store cards), lenders would require the following as a minimum :-
- 3 months credit/store cards statements
- 6 months of existing loan statements
- ATO Portals (if self-employed)
- 6 months of daily transactional accounts, showing salary credits etc
With older borrowers, lenders will look for a clear Exit Strategy to ensure that the loan would be cleared before retirement age and not cause any financial hardship to the borrower. Generally, the strategy includes a new loan placed onto a Principal and Interest Repayment.
Tags: debt consolidation