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How a balance transfer could help you save


Debt consolidation is the process of bundling a number of debts – from car loans and personal loans to credit cards or store cards – into one. Depending on your circumstances, debt consolidation could simplify repayments and help you get a clearer picture of what you pay to maintain your debt.

It’s important to consider whether consolidation is right for you and to carefully assess the various options available – you may choose to consolidate debts with a credit card balance transfer, for example. Here we’ll run through some of the basic reasons you might consolidate debts into an unsecured personal loan.

Better manage repayments

Keeping track of various interest rates and repayments can be one of the hardest things about having multiple loans and credit cards. Each new debt adds a layer of complexity to the process of aligning repayments with your budget and cash flow.

Combining debts gives you the ability to streamline obligations into a single, regular repayment. Depending on your circumstances, you may also be able to tailor the frequency of repayments to align with your budget.

Calculate whether you can reduce costs

In some cases, consolidating a number of credit cards or personal loans into one loan could help you pay less in fees and interest to maintain the same amount of debt. When considering whether debt consolidation might reduce the cost of maintaining your existing debt, remember to factor into your calculations any break costs you’ll need to pay when you end existing debt, as well as the maturity of your existing loans.

Plan an end-date for your debt

With a single interest rate and fee structure in place, you may find it easier to see exactly how much you need to pay and understand how long it’ll take to repay your loan entirely. Bear in mind that a longer loan term could mean you pay more interest over the life of the loan, whereas a shorter loan term may mean higher regular repayments.

If you’re an existing St.George customer and struggling with repayments, our financial hardship team could help – give us a call on 1300 303 110.

If you think debt consolidation might be a good idea based on your circumstances and objectives, read more about whether debt consolidation could work for you.

You could also find out more about our unsecured personal loans.

Important information

Credit criteria, fees, charges, terms and conditions apply. Terms and conditions available on request.

This information is prepared without knowing your personal financial circumstances. Before you act on this or any advice, please consider if it's right for you. If you need help, call 13 33 30.

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