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With the New Year well underway it is an ideal time for consumers to take control of their finances.
Andrew Maitland, National Australia Bank, Regional General Manager Consumer Banking, said this is a time of year when credit and store card bills start to arrive and those once interest free loans start to attract high rates of interest.
"Now is a good time to seek advice and start looking for a smart option to manage your finances such as debt consolidation," he said.
"Consolidating debt to a personal loan can help reduce debt in a structured way without the temptation of a credit or store card to make new purchases.
"If you're considering this option remember that a competitive variable or fixed interest rate is important, however, the contract should also allow lump sum payments or the flexibility to repay the loan without incurring penalties."
Consumers who have smaller debts on credit or store cards can often take advantage of a low rate credit card or balance transfer offer.
"These solutions can help reduce the amount of interest you pay to help you get out of debt sooner," Mr Maitland said.
"If considering a balance transfer offer it's important you aim to pay the full transfer amount within the offer period, as unpaid amounts often attract a higher rate of interest."
Five steps to get control of your finances for 2007
1. Make a list of everything you owe and your monthly repayments so you can understand what your debts cost you each month. Also list the interest you are paying.
2. Consider consolidating your debts into one lower cost loan. Shop around for a product that meets your financial needs and take the time to understand the Terms and Conditions of offers and products.
3. Use the loan to pay off the more expensive credit.
4. Close down old credit or store cards so you are not tempted to make additional purchases.
5. Stick to your repayment plan and budget.
NAB has a number of online tools available to help including a budget planner and loan calculator - visit www.nab.com.au
For more information about a NAB Personal Loan or Credit Card- visit your local NAB branch for advice or call 13 NAB (13 22 65).
For further information, please contact:
Zillah Paradisis
Public Affairs, National Australia Bank
Ph: 03 8634 1618
Mob: 0403 325 380
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