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Are your debts becoming unmanageable?

It is a fairly ordinary practice for individuals to utilise numerous credit cards and loans in an attempt to stay on top of their expenses. Such a practice often creates a financial burden well beyond their initial expectations mainly due to the short period of amortisation that credit cards force you into combined with their comparatively high interest rates. Consolidation is often the best decision in these circumstances.

Combining your many debts into one loan will lessen your repayments and make it more convenient to manage and repay.


Getting an approval


  • Lenders generally use less generous criteria for debt consolidation loans.
  • Having a large number of existing loans, especially to different lenders, and having significant unsecured debt is considered risky behaviour by banks. Because of this, banks will rarely depart from policy.

Normally, to get approval with a major lender you must have:

  • Repaid your home loan repayments in a timely fashion for the past 6 months.
  • Repaid your credit card and personal loan repayments in a timely fashion for the last 3 months.
  • Never missed a repayment with the specific bank that you are attempting to obtain approval with.
  • A strong financial standing so that you have the confidence and ability to finance the loan being taken out.
  • A steady employment history.
  • A solid credit history.

If the above points do not personally apply to you, then your needs are more suited to a specialist lender, rather than a bank. Naritas credit advisers have the expertise and accreditations to assist in such situations.


What amount can you borrow?

Potentially an amount of less than 90% of the value of your property (LVR) will be available for borrowing. However, without an equity in real estate, it would not be possible to apply to consolidate your loans.

If your credit history is clean and all of your liabilities have been consistently paid in a timely fashion then you can borrow anywhere up to 90% of the property value. If your debts have been mostly repaid in a timely fashion, but not are not entirely blemish free, you may borrow up to 80% of the property value. Having missed payments on all debts, or having a poor credit rating, may only allow you to borrow up to 75% of the property value. Authorization will also rely on your ability to prove that your credit history will not be repeated with the current loan you are taking.

Creditors will be worried if the individual in question is living beyond their means or are experiencing financial hardship from is not possible to recover. In order to negate the effect of this, various methods can be used to explain to the creditors that this is a volatile, one off event. If, in your past history there was serious credit impairment, then you must demonstrate that you can afford to pay off the new loan.  If you cannot afford to, the lender temporarily prevents the sale of your property.


What if you currently do not have enough equity?

Don’t lose hope. There are still choices you can consider. For example, we may be able to apply to have part of your debt written off and the rest of your debt consolidated into your home loan.


What are the benefits of debt consolidation?

  • Affordable & streamlined repayments.
  • Lower interest rates payable.
  • Effective, stress-free debt management.
  • Avoid any issues with creditors bothering you for funds.
  • Developing a plan to manage risks such as bankruptcy.
  • Making financial inroads into the principal outstanding.
  • Enhance your cash flow without increasing your debt.


Managing and consolidating debt is convenient with the help of professionals. We have full knowledge of how the lenders will view your situation and we will submit your application with the right lender, to ensure that you get approval.


Hey, thanks for the info. Now what?

Speak to a Naritas Adviser via live chat for an obligation free consultation today or call us on 1300 558 887.

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