Updated: Oct 12
For many Australians, the endless cycle of debt and bad credit feels impossible to escape. More than 21% of Australians risk defaulting on their credit scores, while 22% have been denied a loan due to having too much debt. Without many options available, millions of Australians feel trapped in an endless cycle of bills, repayments, and high interest loans.
One of the strategies Australians use to get out of the debt-credit paradox are debt consolidation loans. Designed to pay off high interest lenders and bundle payments into a lump-sum bill, debt consolidation loans may be just what you need to get your finances under control. Even if you have less than optimal credit, there are some ways to take out a debt consolidation loan and rebuild your score over time.
Let’s explore what it takes to get debt consolidation loans with bad credit in Australia, as well as the benefits, changes, and impact it could have on the future of your financial wellbeing.
What are guaranteed debt consolidation loans for bad credit in Australia?
Contrary to popular belief, your credit score may not necessarily prevent you from taking out a debt consolidation loan. Guaranteed debt consolidation loans allow borrowers to pay off high interest debts and make simple monthly payments regardless of their current score.
A debt consolidation loan may be a good option for you if:
You owe less than 50% of your household income to debtors
You have a steady income and a means of repayment
You are looking to escape the cycle of debt once and for all
With some simple verification and documentation, you could receive a successful lending contract within one business day or less.
Can you get debt consolidation loans in Australia with bad credit?
Your credit score is only a small portion of applying for a debt consolidation loan. Today’s lenders are more interested in your current financial situation than past issues, which is why they often request bank statements, payslips, and other forms of income verification rather than credit scores alone.
However, credit may still play a part in the lending approval process. To give yourself the best possible chance of receiving a debt consolidation loan, do what you can to maintain or improve your current credit score:
Resist pulling out any more debt
Pay all your bills in-full and on-time
Lower your current credit limits
So, can you get a debt consolidation loan with bad credit? Absolutely! At Salt & Lime, we are passionate about helping Australians all over the country achieve the financial independence they deserve. Discover if our services would be a good fit for your financial situation by submitting an online contact form.
The benefits of debt consolidation loans with bad credit
There are several reasons why borrowers with low credit scores turn to bad credit debt consolidation loans.
1. Debt consolidation loans reduce high-interest debts to a single monthly payment. By spending less and saving more, borrowers have the ability to pay down debts faster and regain a margin of control in their financial lives. You may also be able to earn interest rate discounts over time with financial wellness modules.
2. Debt consolidation loans can help you rebuild your credit score. As regular payments are made both on time and in full, credit bureaus are more likely to increase your score. You may start to see significant improvements in just 12 months or less!
3. Debt consolidation loans restore your confidence. You can feel strong and capable about your financial future by paying off your balance each month. Make additional payments to reach your goal even faster!
Bad credit should never define who you are. By applying for a debt consolidation loan from a reputable lender, you can move on from the past and create an even brighter future with simple, predictable payments.
Get debt consolidation loans even with bad credit from the team at Salt & Lime. We would be happy to accommodate your journey to financial healing with accessible, friendly, and no-judgement lending.
How to apply for debt consolidation loan with bad credit
Online applications for bad credit debt consolidation loans are simple, straightforward, and extremely efficient. Here’s how to get a debt consolidation loan with bad credit at Salt & Lime:
Begin by gathering all the important documentation. Make copies of your most recent bank statements and scan any payslips you have received over the past three months.
Have some form of ID on hand to verify your identity and date of birth. Passports and driver's licences are both potential options. If you do not own either of these forms of ID, please get in contact with one of our lending professionals.
Answer all provided questions about who you are, what you do, and your current financial situation. This may include a credit check, which will be completed by our office staff.
Wait for a response. You will likely hear back from the Salt & Lime team within one business day. Keep in mind that we may need some additional information to complete your application process.
That’s all we need from your end! Just sit back, relax, and wait for any next steps. If you are accepted as a borrower by Salt & Lime, you can expect us to make payments directly to your lenders.
Salt & Lime is ready for your bad credit debt consolidation loans
Rebuild your credit and your confidence with an accessible debt consolidation loan from Salt & Lime. A simple online application unlocks access to borrowing tiers that work with, and not against, your long term financial goals. You already have what it takes to end the cycle of debt for good — all we do is help you get there.
No matter who you are or what your credit score may be, the professional team behind Salt & Lime is ready to assist with life-changing debt consolidation loans. Get in touch with us today to learn more about how we can help, or begin the application process now to chat with a customer service representative. We can’t wait to be a part of your solution — and your debt-free future.