Here is the best information for Australian personal loans, debt consolidation, car loans and tips on how to get lowest interest rate for all these loans in Australia. General published interest rate for personal loans in Australia is usually higher than car loan. Personal loans interest rate is around 10-19% a year while car loan is usually less than 10% a year. Therefore, if you are buying a car on personal loan, isn’t that is a stupid action?

Australian personal loans

As we have mention earlier, personal loans interest rates is usually higher than car loan. It is not advisable to purchase a car with personal loans instead of car loan. It sounds not logic for someone who is not eligible to get car loan to apply for personal loans. Supportive document is needed. Usually personal loan is for debt consolidation, old cars or classic cars, paying wedding expenses, buying furniture, school fees, repaying credit card debt IF ONLY the interest rate is lower than credit card charges, make home improvements, and among others.

Australian debt consolidation

What is debt consolidation? It entails taking out ONLY ONE loan to pay off many others loan. This is a common strategy for those who have bad credit history or who is unable to pay their loan. These are the reason why you need to do debt consolidation:

• To get a secure lower interest rate to pay off many others higher interest rate loan (estate loan, home loans, mortgage loans, personal loans, or credit card)
• It gives you a secure fixed interest rate unlike estate loan or housing loan with the interest rate that fluctuates.
• A good strategy used by consumer to manage their debt problem in a better way.
• A way to get lower monthly payment and longer repayment period.
• A great consumer’s technique when they have trouble meeting their existing obligations.

Australian car loan

There are many types of loan you can apply to buy a car, personal loans, secured or unsecured loans, car loans, and some others. The main consideration is whether it is worth or not worth?

Let’s see a very simple example. Angelina is having $50,000 cash on hand and she is thinking to buy a $50,000 dollar car. She can either:

1) pay by cash or

2) get a $40,000 loan with the interest rate of 5% a year

On the other hand, Angelina is having $100,000 housing loan with the interest rate of 10% a year. In this situation, the best solution is to pay $40,000 to the housing loan and apply $40,000 car loan at 5% a year. Angelina will then left $60,000 at 10% and $40,000 at 5% rather than keeping the $100,000 at 10%, isn’t it?

In conclusion, you will save up a lot of money if you spend some more time read more about Australian personal loans, debt consolidation, car loans.