You probably know how overwhelming it can be to manage multiple debts.
Having to juggle repayment dates, interest rates, and financial obligations can be stressful.
As a practical solution to consolidate debts, debt consolidation loans provide you with the opportunity to pay off a variety of debts with one repayment.
As well as simplifying your financial life, it may also help reduce your overall interest rate, and you may be able to save money over the long term as a result.
There are a lot of lenders that offer debt consolidation, so how can you know which is the best one for you when there are so many options available?
In this article, you will learn how to find the best debt consolidation loans and what to consider when choosing a lender for your debt consolidation loan.
How does Debt Consolidation work?
The idea behind debt consolidation is to combine all your high-interest debts into one.
The benefits of this are that you are able to pay things back easily and you can even lower your interest rates in the process.
It’ll simplify your finances and make life easier since you’ll only have to deal with one monthly payment instead of juggling a bunch.
You can plan your monthly budget much easier with a fixed interest rate and set repayment schedule.
What debts are you able to consolidate?
These are a few examples of types of debt you can consolidate with a debt consolidation loan:
- Credit card balances
- Personal loans
- Short-term or cash loans
- Car loans
- Buy-now-pay-later balances
- Overdue bills and fines
- Hire purchases
Benefits of Debt Consolidation
Payments made easier
It’s easier to manage your life when you only have to worry about one monthly payment instead of multiple due dates. As a result, you are less likely to miss a loan repayment, preventing you from incurring late fees, high interest rates, and accumulating even more debt.
Rates are lower
Many people find that consolidating their debt reduces their overall interest rates, saving them money over the loan term.
Credit score improvement
You can really boost your credit score when you start making regular payments on your consolidation loan.
Relieving stress
It can sometimes be challenging to cope with dealing with a bunch of accounts and due dates at the same time. But by consolidating your debt, you can lighten the load and only have to worry about one loan. This will also help you feel more positive about your finances and get back on track.
Repayments are lower
The monthly repayments on a long-term loan are often lower than those on a short-term loan. Combining many short-term loans into one long-term loan can help you save a lot of money each month.
How To Find The Best Debt Consolidation Loan
Here are a few things to keep in mind when you’re looking for a debt consolidation loan.
Choose a lender that pays your creditors directly
With their help, you won’t have to worry about paying off your loans or dealing with all the back-and-forth. You’ll also boost your credit score and avoid wasting money.
To make the whole process super easy for you, Auckland Loans pays off your existing debts.
Check to see if it will save you money
When you consolidate or pay off your other debts early, you might have to pay fees, but since your interest rate will usually be lower, you should save more than those fees.
It’s important to choose a lender that offers tailored rates so you won’t get caught out with hidden fees! Auckland Loans offers tailored rates to suit your situation, so you’ll get the best deal!
Ensure that you can borrow enough
Check that the lender covers all your current debts since they can vary. It’s a good idea to compare secured and unsecured loan options. Typically, unsecured loans range from $30,000, but with Auckland Loans, you can get up to $75,000 without any collateral.
Repayment terms that are flexible
Make sure your repayment plan is affordable, allowing you to save while keeping payments high enough to pay off your debt quickly. Auckland Loans offers repayment periods ranging from 7 to 6 years, so you’ll have time to pay it off.
Do you know how much you could save?
Cost savings are one of the main benefits of debt consolidation loans.
You will have lower overall loan payments because we can combine your debts into a new loan at a potential better interest rate.
A customer of ours, Jarrod, was paying $469 per week on his debts, and he wanted to free up some of his disposable income. After paying off all his debts, we gave him a debt consolidation loan for $235 per week. He got $234 extra per week to spend how he wanted!
Another one of our customers is Tamara. She was desperate for cash to repair her car, but couldn’t afford to pay for it. She already had several loans and could not afford to pay any more. Tamara was able to fix her car with a debt consolidation loan. Her total loan payments were $100 less per week than before!
Find out how much you can borrow with our free online loan calculator.
How to Choose the Right Loan
A debt consolidation loan can help people manage their debt and improve their finances.
If you choose the right debt consolidation lender, like Auckland Loans, you can get better rates and flexible terms.
Our loans are fair and affordable because of our competitive interest rates and flexible repayment options.
It only takes two minutes to complete our online application, and we usually get approval within 1-2 hours*.
If you need a larger loan amount, our secured loans allow you to borrow up to $150,000.
It’s not a deal breaker if you have bad credit. We work with people with less-than-perfect credit to achieve financial success.
Find out how we can help you by getting in touch with our friendly team today.
*Subject to responsible lending criteria
