Streamline your debts into one easy repayment
How does it work?
Credit cards and unexpected bills can catch you by surprise. A debt consolidation loan might be the answer. It brings all of your debts together with a single monthly repayment and a clear end date as to when the debt will be repaid in full.
All your debt in the one place
Having multiple credit cards and loans can be hard to manage. Different due dates and repayment amounts can become confusing and make the process of reducing debt even harder. Combining all these debts into one single repayment might make it easier to budget and even encourage you to pay extra to reduce your debt faster.
Put an end to your debt in sight
Making the minimum monthly payment on a credit card might keep the bank collections department at bay, but it doesn’t reduce your balance fast enough to really make a dint in the debt. Combining your debts into one loan over a set period of time puts a clear end date to when your debt will be paid in full.
Things to consider first
Managing debt can sometimes be very overwhelming and adding to this debt may not be the best course of action. It is very important to budget correctly to make sure you are not spending more than you are earning. A debt consolidation loan might make it easier to budget, but it is important to understand how much interest you will be paying over what period of time. A debt consolidation loan should also help reduce the amount of interest you will pay (but not in all cases). It is important to speak with your mortgage broker or financial adviser to make sure a debt consolidation loan is suitable for your needs.