Consolidating credit debt loan

If you have three different credit cards with debts of, for example, ,000, ,000 and ,500, you’re likely to also have three different interest rates and to be making three different repayments at different times each month.

This can feel overwhelming and complicate managing your cash flow.

Instead of just having to make minimum repayments as you do on credit cards, you’ll have to make set repayments that cover both the loan amount and interest, which you know will end at a certain date.

You can choose to lock in your interest rate with a Fixed Rate Personal Loan, or enjoy the flexibility of making extra repayments and clearing your debt sooner with a Variable Rate Personal Loan.

You can also visit your nearest CBA branch to speak with someone in person.

If, however, your financial situation is a little more pressing, you can call our Customer Assist Team on 1300 720 814 from 8am-9pm Sydney time Monday to Friday, and from 9am-2pm Sydney time on Saturday.

Paying off more than one debt at a time is not uncommon.

But if you’re struggling to balance your debt repayments, debt consolidation may well be worth considering.

Typically this is how these companies work: Instead of obtaining a new loan to pay off your credit cards, the debt management company tries to negotiate with the credit card companies to reduce your interest rates or otherwise lower your monthly payments.

Each month, you make a single payment to the debt consolidation firm and it distributes a portion of your payment to each of your creditors.

(To learn more about managing credit card debt, see out topic on getting out of credit card debt.) Consolidating your credit card debt essentially means combining all of your debt into a single loan or paying your creditors through a single monthly payment.

You can do this by taking out a consolidation loan or using a debt consolidation or management company.

The amount of your monthly payment will depend on the total amount, interest rate, and payment terms of your consolidation loan.

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