Have you approached your existing lender for Debt Consolidation and were declined?
Perhaps you were told that refinance is out of the question with your credit history. So what are your options?

• Obtain a Copy of Your Credit Report
• Debt Consolidation through your mortgage
• Informal Debt Agreement
• Formal Debt Agreement
   

1. Obtain a Copy of Your Credit Report
To clearly understand the nature of your credit problem you should obtain a copy of your own credit report. You can do so by visiting http://www.mycreditfile.com.au

It just may be that the report contains errors or defaults that are not really yours.
Should that be the case, you need to contact the credit provider and instigate an update to your credit report to remove the erroneous entries.

Perhaps the issue is that you have too many loan inquiries but your credit is clean.
In that case all you need to do is wait for 3 months before applying for another loan.

If in fact you have outstanding defaults, which are genuinely yours – all efforts should be directed at repaying these. You will find that most lenders will not consider a refinance for someone who still has outstanding defaults.


2. Debt Consolidation through your mortgage

Even with a Bad Credit History you should be able to consolidate your outstanding unsecured debts into your mortgage. This is only possible if you have sufficient equity in your property and sufficient income to qualify for the loan.

Debt Consolidation through your mortgage is a very effective way of reducing your monthly commitments and clearing up any outstanding debts.

Even where your Personal Loans or Car loans have a reasonable interest rate, but paying these off over a longer period of time your monthly repayment obligations are significantly reduced.


3. Informal Debt Agreement
If you are not a home owner, or are not able to refinance your debts into your Mortgage due to either lack of available equity or lack of required income – an Informal Debt Agreement may be a great option.

Informal Debt Agreements allow you to negotiate with your creditors a repayment plan which you are able to afford. This should reduce your monthly debt obligations as well as your outstanding debt balance.


4. Formal Debt Agreement

Formal Debt Agreements are a simple way for people to settle debts with their creditors through a formal, legislative accord. Formal debt agreements are a simple and cost effective alternative to bankruptcy. They also facilitate a reduction in monthly payment obligations to your creditors. They will be reflected on your credit report and will therefore have an impact on your credit history.