Sometimes, we can find that we have taken out store cards, credit cards, car loans, personal loans, and loans from family – all sorts of loans, to cover all sorts of expenses. Before long, we have lots of debts and lots of repayments to juggle. This can become stressful.
A debt consolidation loan adds up all your smaller debts and then pays them off with just one overall loan product called a debt consolidation loan.
Often, by ending up with just one loan, you can save on the interest you were paying across all the smaller loans. It also means that you can concentrate on just repaying the one loan, hopefully helping you get out of debt quicker.
Because a debt consolidation loan has a set end date, it means you’ll know exactly when it will be paid back by. Not to mention the likelihood of missing a loan repayment is reduced, helping ensure your credit score is protected. Having a good credit score is very important to obtaining a finance approval and also to obtaining a competitive interest rate.
The best things about organising a debt consolidation loan:
- Take Back Control – You are taking back control of your financial future.
- Simplify Payments – You end up with just one regular loan repayment that has a fixed end date so you know when you will be debt free.
- Improve Budgeting – Your repayments are fixed so you can budget better.
- Potentially Reduce Your Interest Bill – The interest rate is often lower than the rate you currently pay, especially credit cards.
- Pay It Off Quicker – In most cases there’s no interest penalty for early repayment so if you want to pay it off quicker you can.
- Help Protect Your Credit Rating – With only one repayment to manage instead of multiple payments, you are less likely to miss a repayment.
Wright Financial have many different providers that we can use to help you get your debts under control.
For a limited time, submit your contact details and book an appointment with one of our advisers and receive a $50 voucher on your first visit.