Why Debt Consolidation Loans are a Good Idea

Living with numerous debts can be a stressful experience. In fact, the mere thought that different bank managers may just make calls any minute to ask about pending payments is enough reason to throw one’s mind into disarray. But this does not have to be so. At the moment, there are debt consolidation loans that can help consumers make one payment instead of several others.

Being in debt is no reason to be stressed because after all, there is always a way out, human beings just often fail to see things in a wider perspective. Debt situations are not permanent for someone that is intent on clearing them. That is why there are debt consolidation loans that are meant to assist consumers deal with just one lender instead of many.

Advantages of Debt Consolidation Loans

  • One gets to save some money – If a higher value debt is consolidated into a lower rated one, there is the chance of saving hundreds if not thousands of dollars. And who needs to save even a single cent more than that consumer who is in debt? For this reason, it is prudent to consider debt consolidation loans as a way to save a few dollars. Read more at Debt Mediators
  • Life is made simpler – By operating a single account instead of multiple ones, life is made easier. In case there are expected phone calls, it is likely to come from just one source and this is not as stressful as having to answer three of four distressing calls. A consumer who yearns for a simpler life should make enquiries on how to get a debt consolidation loan from a financial institution that offers low interest loans.
  • Likelihood of increasing deductions – For the working Australian individual with pay at the end of the month, in case there is an increase in earnings, one can strike a deal with the bank to increase deductions to shorten the time span of loan. Remember, the shorter the repayment period, the less the interest. A consumer could also check out bad credit consolidation loans Australia offers for both short term and long term loans.
  • Improvement on credit score – Most financial institutions lend only after scrutinizing a consumer’s credit score. Although most purport to overlook this factor, the amount sought is affected by an individual’s credit score rating. Several loan accounts with late payments do not account for an improved credit score. It is therefore important to service just one loan account to improve score.

Points to Remember

Although debt consolidation loans are available for people that need to combine numerous debts to have one repayment point, there is need to control spending to avoid falling into financial pitfalls. This can be done by:

  • Reducing expenditure – it is wise to cut down on spending, more so, on luxury.
  • Improving earnings by taking on more jobs to boost income.
  • Having a budget that guides on spending.
  • Limiting borrowing until such a time that the debts are shelved or reduced to a minimum.
  • Using debt mediators that will help with sound financial advice.

There is no reason to stress one’s self with a number of debts when there are ways to consolidate them. Consumers may find out the latest interest rates for bad credit consolidation loans unsecured on offer from lenders.

Financial Planning for a New Baby

It is exciting to welcome a new baby into your family. All the same, it is equally important to remember that a new baby comes with new responsibilities and commitment on your part as a parent. This may require you to find ideal solution to the question, ‘where can I get free financial advice?’

However, even before you answer this question, you should understand that the crucial part is your financial preparedness to meet the requirements of both you and the new member of your household. Especially if you are a new mom, you will require special clothes in addition to baby clothes. You may also need to relocate to a spacious room. For effective financial planning for your new baby, consider the following:

Spread the cost

For the nine months of pregnancy, you can spread the cost effectively to avoid a heavy budget at the last minute. Do not worry about ‘where can I get free financial advice?’ The best way to escape the hurdle is to involve a financial planner to advise you on how to save for your coming baby.

For example, if the lump sum budget for the project is $5000, you can save at least $500 for nine months to cover the cost by the time your baby arrives. If you find monthly savings a bit difficult, you can narrow it down to weekly savings. This, in the end, can help you deal with delivery fees, maternity clothes, new baby clothes and more.

Find out what your healthcare plan covers

Obviously, finances will play an important part in the new baby project. This explains why you should invest in various healthcare plans in the market as well. Find out what can work best for your situation. Moreover, before you can ask the question ‘where can I get free financial advice?’ you should find out various financial planners in your area. Here are a few areas to consider with your healthcare plan:

·         Work with more options: Pregnancy comes with many challenges and it is advisable to consider various options. In this regard, find out how alternative delivery methods would affect your cost. For example, if you have to undergo Cesarean section, how would it affect the overall cost? Answers to such questions can prepare you financially for any eventuality.

·         Your work life: Pregnancy of course, will affect your work life and eventually your finances. If you are employed, you need to know how your employer comes in. Do you have a paid maternity leave? What about sick leave offs—does your employer pay for them. Can you work part time at home during your pregnancy? All these and others are important questions with answers that can prepare you financially before your baby comes.

When you plan well ahead of your pregnancy, you can avoid many issues that arise the last minute. You will be able to cut costs, avoid unplanned purchases, and enjoy the fruits of a responsible parent. Finally, obtain as much information as possible on financial planning. Many people struggle with the question, ‘where can I get free financial advice?’ However, with resources in the internet, you can amass as much information as you want.

Debt Assistance – Individualised Solutions

In many countries, borrowing by the public leading to their facing uncontrollable debt situations is sometimes overshadowed by the borrowings by the government. In fact, even in the context of the federal government in Australia, there has been a study comparing how the government’s reckless fiscal management appears similar to the way the Australian public builds up their individual debts which they find difficult to pay back. The figure being quoted is of the order of $1.7 trillion! This is the total estimated household debt in the country. Individuals seek debt assistance from agencies, which try and help them to manage their finances better. Governments may not have that luxury.

They Go by Many Names; Offer Similar Solutions

The typical debt relief services would be a kind of one-stop shop for a host of services, and they are called by many names as well. Some call them credit repair companies and other debt assistance bureaus and so on. But the range of services they offer is almost the same. If you are stuck with insurmountable debts in the form of personal loans or credit card dues, approach an agency offering debt assistance services Australia wide, as they can come to your help in more ways than one.

The first thing any such agency would do is listen to your full story. This will mean knowing how much you owe on each count and how many lenders are involved and what your income and expenditure levels are. This would give them an overview and based on their experience handling similar cases for others, they will come up with the suggestions to come out of the situation. There can’t be a one-size-fits-all solution for everyone. The agencies may offer a one-time free counselling on some general options available for the person to manage the debt crisis if it appears to be within manageable limits.

Some Practical Solutions

The problems an individual can face if she or he has run up huge debts are manifold. To start with, if the person has borrowed from multiple lenders, which is often the case, then even attending to their phone calls could be quite demanding. One of the debt assistance programs that are suggested is to try to go in for one large loan to settle all the other dues. But this is not easy since the credit rating of the person would be already very low, and hardly any lender will come forward to lend any more. The debt assistance agency can be of some help here, provided you have a steady income currently, and it can be established that this would continue in the future as well.

It is only in very helpless situations that the debt assistance service agency may suggest going in for a bankruptcy declaration. Even here, there is legal protection to ensure that some of the basic assets, like a home owned by the individual, are not included in the list of assets being disposed of to settle part of the debts under the bankruptcy declaration. For more details, just visit HTTPS://WWW.DEBTHELPLINE.COM.AU/CALCULATORS/DEBT-MANAGEMENT-LINKS/

Examining Applications of the Doctrine of Exoneration

The principle of exoneration can apply when a single joint property-owner uses it as security, with consent of the other owner, for a loan made solely to the two parties. The other joint owner in such situations does not enjoy the loan-benefit. The joint owners usually are husband and wife, but it is not necessary for them to be married for the doctrine to be applicable.


Dictates of the Principle

The exoneration doctrine in essence dictates that a loan which is solely to the benefit of one party should be paid out firstly of that party’s share. In such case, the other mortgage-party should be seen only as a surety, with their share only being utilised in case of a possible subsequent shortfall. The practical effect and legal reasoning behind the doctrine are both not very simple.

The doctrine of exoneration presumes the intentions of such two parties along with their roles in the transaction. It includes defining who the principle and surety are, although both of them have under the mortgage the same legal obligation and both their share of entire property gets mortgaged. The principle of exoneration absolves the co-owner of any blame for the loan. Given they did not get the benefit out of it, they need not be held as being primarily responsible for repaying it. That primary role rests entirely with the party to whose gain the loan was made.

The over-riding aspect is that the loan has to be utilised for a distinct purpose that is separate from and does not involve the other co-owner. If both husband and wife for instance both stood to gain from such a loan, the husband shouldn’t be the only one bearing the initial responsibility of making its repayment. A bankruptcy trustee obviously of one of these parties would want to know if both parties gained from the loan along with what extent the estate’s interest in their property is liable to the debt. Any part of the secured debt applied for a joint purpose will not enjoy the benefit of the exoneration principle.

Example of the Principle Applied

George and Jane own a house that is worth $400,000. John borrows $250,000 to finance a commercial entity in which Jane bears no financial interest. This loan is borrowed against the property they jointly co-own 50/50. George then declares bankruptcy soon after venturing into his start-up business.

The Bankruptcy Doctrine of Exoneration in such case will not keep the lender from selling George and Jane’s house to take care of his business loan. The remaining house-proceeds will nonetheless not be shared 50/50. Rather, if the house sells for $400,000 for example, the $250,000 is first deducted to recover the business loan and $150,000 remains.

Since Jane originally had $200,000 equity invested in the property as did George, Jane will keep the entire $150,000 while George gets nothing. If the bankruptcy trustee or creditors were expectant of gaining access to a part of John’s house for offsetting other debts, they would be quite disappointed. This is because George will have no equity left within the house for applying to anything else apart from the business loan.

Learn more information here at https://www.debtmediators.com.au/bankruptcy/bankruptcy-doctrine-of-exoneration/.