In the current chaotic economic environment many people are more worried about their ability to manage their personal finance commitments with several institutions. This may be due to concerns over job security or changing economic circumstances within the household.

If you’re having trouble juggling many accounts and ensuring you meet the differing due dates for payments, or the terms, conditions and contracts on different types of loans or credit, a debt consolidation loan could be worth investigating.

A debt consolidation loan allows you to simplify your money matters by consolidating your personal finances into something more manageable. You roll your current debts into a single easier-to-manage loan with one fixed repayment at regular intervals - generally each week, fortnight or month - depending on your lifestyle needs.

Further advantages of these types of loans include big savings in paperwork, as well as time and worry each month, and more control of your finances.

When examining debt consolidation loans the key things to look for are:

• The institution’s ability to set a loan term and amount that actually suits your budget. Amounts from $3,000 upwards with terms from two to seven years give the flexibility most people need;
  
  
• The ability to help you with the paperwork to move all your current commitments into the one loan – as this can be a bit of work if you’ve got lots of accounts with different credit providers. Staff should be able to work with you to determine your current commitments, then assist you to payout existing debts.
  
  
• Flexibility with payment options so it suits your lifestyle. Since a key reason for establishing a debt consolidation loan is to ease the stress of juggling your finances, make sure that payment options are right for you. There should be options for weekly, fortnightly or monthly payments. The ability to use direct debit should also be available.
  
  
• Because everyone’s financial management needs are unique with these types of loans, the institution should be able to work with your personally to create a debt consolidation loan that meets your lifestyle needs; and most importantly
  
  
• Don’t agree to anything or sign anything you don’t fully understand. If you’re unsure, keep asking questions until you have the full picture.

Juggling personal finances doesn’t need to be a headache - even if most of us haven’t paid much attention to it since school! Finding the right debt consolidation loan for you should allow you to get your personal finance commitments back under control.

For more information, visit www.gemoney.com.au