RAC Debt Consolidation Loan
- Interest Rate (p.a.)
- 7.80% to 12.25%
- Comp. Rate (p.a.)
- 8.30% to 12.77%
- Min Loan Amount
- $8,000
Summary
Consolidate debt or refinance and save money. Interest charges and fees apply.
The Debt Consolidation Loan from RAC allows you to roll all your personal debt into one loan with a single monthly repayment and interest rate. You can also use the funds to refinance your current car loan and save on interest charges. Interest rates will vary depending on how much you borrow, starting from 7.80% p.a. up to 12.25%
Details
Product details
| Product Name | RAC Finance Debt Consolidation Loan |
| Interest Rate (p.a.) | 7.80% to 12.25% |
| Comp. Rate (p.a.) | 8.30% to 12.77% |
| Interest Rate Type | Fixed |
| Min Loan Amount | $8,000 |
| Max. Loan Amount | $100,000 |
| Loan Security | Secured |
How does the Debt Consolidation Loan work?
This loan can be used to consolidate your debt, or to refinance your current vehicle loan. By consolidating debt, you’ll be rolling your debt into a single loan. This gives you the advantage of having only one loan to repay and one (ideally lower) interest rate. This can help you save money and simplify your finances. With refinancing, you can find a better deal than you currently have and stand to save by opting for a lower interest loan. Your interest rate will depend on how much you borrow.
What features does the Debt Consolidation Loan offer?
- Secured loan. You can use your current vehicle to secure this loan. This can include your car, boat, caravan, jet ski or motorcycle. This gives you access to a lower interest rate and higher borrowing amounts.
- Consolidate or refinance. You can use this loan to consolidate your existing debt or refinance a car loan. This can help you save money on interest payments.
- Fixed rate. With a fixed rate loan, you know what your monthly repayments will be. This makes it easier to budget for loan repayments.
- Flexible loan term. Your loan term can be between 3 and 7 years.
- Borrow from $8,000 upwards. The minimum loan amount is $8,000. You can borrow up to $100,000.
- Pre-approval available. You can get pre-approved for the loan within 7 working hours.
- Quick turnaround. You can get your loan funded within 24 to 48 hours from settlement.
How much does the Debt Consolidation Loan cost?
There are a number of costs associated with the Debt Consolidation Loan. These include:
- Loan principal
- An establishment fee of $349
- A Personal Properties Securities Registration fee of $8
- Fixed interest rate, which is influenced by how much you borrow
|
$8,000–$29,999 |
12.25% p.a. |
12.77% p.a. |
|
$30,000–$49,999 |
11.05% p.a. |
11.57% p.a. |
|
$50,000–$64,999 |
8.85% p.a. |
9.36% p.a. |
|
$65,000 and over |
7.80% p.a. | 8.30% p.a. |
This loan does not charge monthly or annual account keeping fees. You may also be charged an early termination fee of $400 if your loan is repaid in the first 24 months.
What are the pros and cons of the Debt Consolidation Loan?
Pros
- Fixed rate. You know what your monthly repayments will be and can budget for them with peace of mind.
- No monthly fees. This loan does not come with monthly or annual account keeping fees.
- Pre-approval and quick turnaround. You can get pre-approved for the loan within 7 working hours and get your loan funds within 24 to 48 hours after settlement.
Cons
- Interest rate depends on how much you borrow. It is higher for smaller borrowing amounts than larger borrowing amounts.
- Risk to asset. You risk putting your asset in jeopardy by using it as loan security. If you default on your loan, your asset could be repossessed to pay for the lender’s loss.
Am I eligible for the Debt Consolidation Loan?
To be eligible for this loan, you must be:
- Over the age of 18
- Receiving an income and able to repay the loan
- Able to offer security
- An Australian citizen or permanent resident residing in Western Australia
How do I apply for the Debt Consolidation Loan?
You can apply for the loan through the RAC website, on the phone or in person by visiting a Member Service Centre.
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