Sometimes life throws us curve balls, unexpected expenses and changes to our financial situation that can result in us having a couple of different loans or debts. An Unsecured Personal Loan can be a great option if you want to consolidate your debts such as store cards, lines of credit, credit cards, car or other personal loans into one easy monthly payment.
HOW DEBT CONSOLIDATION WORKS
Paying off multiple debts can be stressful, can feel overwhelming or complicate the weekly management of your cash flow. Debt Consolidation works in a way that you take out one single loan for an amount that will pay out all of your existing debts, leaving you with just the one loan to repay each week/fortnight/month. If the interest rate on the new Unsecured Personal Loan is lower than that of your current debts (such as high interest credit cards), consolidating can help you get ahead by reducing the overall interest amount payable.
Before taking out an Unsecured Personal Loan for debt consolidation, you should first investigate the following to help determine if you are going to be financially better off:
- Review the interest rates of your current debts
- Find out the ‘Payout figure’ of any existing loans or credit cards
- Review any fees or charges applicable for paying or cancelling any of your existing debts
- Speak to a Finance Specialist to determine what interest rate and loan amount you are eligible for.
Benefits of an Unsecured Personal Loan for debt consolidation:
Potentially lower interest rates
Repayments could be easier to manage
Could save you money and stress
Can give you a clearer financial picture
How our rates compare
Calculators and rates
At today's lowest personal finance rate of 7.95% (Comparison rate 9.59%) you'll pay approximately...
At today's lowest personal finance rate of 7.95% (Comparison rate 9.59%) you can borrow approximately...