Do you have too many debts in too many places? Are the repayments (that feel like they’re due at the same time) stressing you out? A debt consolidation loan might be the answer.
Why can’t I pay off my debts?
Debts can add up. Quickly. Say you’ve applied for a store card to get that fancy new laptop, but you want special software to go with it. You whack the extras on your credit card, no sweat.
You decide to concentrate paying off your credit card, because the store card’s interest-free for 12 months. Good thinking. But a year later, your credit card’s maxed out and the store card’s high interest is starting to kick in.
One repayment’s due on the 15th of each month, another on the 20th. By the time one comes around, you can’t afford the other. It’s spiralling out of control.
Or perhaps your hot water goes, with the plumber recommending a completely new unit. You put it on your card.
Both these purchases can be justified and were affordable at the time. But now the debts are piling up – and it’s starting to stress you out.
How can you simplify? Take back some control?
What is a debt consolidation loan?
A debt consolidation loan is a way of bringing all of your loans together. By rolling your debts into one – credit card, store card, student debt etc. – you can manage them better.
No multiple annual fees, no huge array of interest rates (and conditions). One loan means one regular repayment, with one interest rate.
To get a better idea of your situation and how you can get it under control, enter your debts into our debt consolidation calculator. It’s a fantastic tool that’ll show you how much your minimum repayments – and monthly interest – change.
Once you roll your debts into one, though, it doesn’t mean you’re instantly on easy street – you still have to pay off the loan. But it does mean you can take a breath. No more stressing about multiple debts.
Why consolidate my loans?
The benefits of one debt consolidation loan usually outweigh having a heap of little debts.
- It can save you money, either by having less interest or less fees to pay (or both).
- One loan's much easier to manage than multiple loans – just one monthly repayment.
- Because there’s only one loan, setting up a repayment plan is easy – you’ll have a better idea of when you’ll be debt free.
- Having one, easy-to-manage debt is a good way to improve your credit rating.
How do I consolidate my loans?
Rolling everything into one makes sense. But before you apply, you should do some homework.
- See how much your new loan repayment will be over different loan terms (or periods) with our debt consolidation calculator.
- Check out several lenders’ debt consolidation personal loan offerings, and then use our loan comparison calculator.
- Once you’ve consolidated your debts, it’s a good time to really get on top of your finances.