A debt consolidation loan can save you money and make your life easier
Struggling to keep track with all your debts? Do you miss payments? What about missed-payment fees? Are you paying too much interest?
A debt consolidation loan could help!
What is a debt consolidation loan?
A debt consolidation loan is a new loan you can use to pay out your many, smaller debts. After which you’re left with one single loan to manage.
A debt consolidation loan can make your debts easier to manage
When you’re juggling many loans, it’s easy to miss repayments.
Maybe your credit provider doesn’t have your latest address, so your statements aren’t turning up.
Whatever the cause, late payments mean late payment fees.
Why not turn all your smaller debts into one single debt? That way you only have one payment to manage each month.
A debt consolidation loan can mean less interest
What interest rate are you paying on your credit card? Your personal loan? What about your store cards?
Did you know that some of these interest rates may be greater than 20% p.a.?
Did you take out a credit card with a low introductory rate, and now you’re paying the full rate? How much are you paying now?
With a debt consolidation loan you could refinance your higher interest-rate debts into one, low-interest loan.
How much interest could you be saving each month?
Types of debt consolidation loan
Secured or unsecured
If you have a personal asset like a car or a house to use as security for the loan, you could be paying less interest on your total debt. A secured loan is less risky for the lender. If you default on the loan, they can sell the asset to recover the monies lent to you.
Flexible repayment frequency
Paying off your loan every fortnight rather than every month means you make more repayments in a year. This means you could pay less interest over the life of the loan and pay the loan off sooner. If that’s important to you, make sure you check to ensure this is possible with your debt consolidation loan.
Would you like the loan repayment to come out of your bank account automatically? This can help you avoid missed payment fees. A good strategy can be to have your loan payment come out automatically on the day after you are paid.
When you consolidate your debts, make sure you don’t get into further debt with your old credit cards. Cut them up and stick to repaying your new, low interest debt consolidation loan.