Why consolidate your debt

A debt consolidation loan is a single loan that you use to pay off other debts leaving you with just one repayment to make, thus, saving you time and money.

How does a debt consolidation loan work?

A debt consolidation loan replaces multiple loans (such as credit card debt, personal loan debt and other unsecured debt) with a single personal loan usually at a reduced rate of interest.

Many individuals make use of debt consolidation loans for the following reasons:

One payment

A debt consolidation loan is the replacement of multiple loans and debts, such as credit cards and unsecured personal loans with a single personal loan. A debt consolidation loan means you only have to make one payment instead of making numerous payments each month.

Affordability

With a debt consolidation loan you may end up with a lower monthly repayment and a longer repayment period. This can help some people to manage their finances more effectively.

Lower rates of interest

A debt consolidation normally consolidates existing credit card and personal loan debts at a lower rate of interest. This will allow you to save money.

Help eliminate creditor pressure

It is very easy to fall into debt, but often much more difficult to get out. With multiple credit card and personal loan repayments, it may be difficult to manage your finances. This may lead to creditors contacting you to arrange payment. A debt consolidation loan may assist you in eliminating creditor pressure because you are only dealing with one mortgage lender.

Protect your credit rating

Having multiple credit card and personal loans may result in late payment and this may affect your financial record or credit rating. A debt consolidation loan may assist you in making your monthly payments and managing your financial affairs more effectively.

For more information about debt consolidation loans and how we can help you consolidate debt into one easy repayment, speak to one of the mortgage brokers at Intellichoice today on 1300 55 10 45.