What is Debt Consolidation?

So what is debt consolidation?

Debt consolidation means you add up all your different debts, like credit cards, store cards and car loans, and roll them into one loan with a lower interest rate. This can give you better control of your finances and mean lower monthly repayments overall. 

Consolidating your debt means there’s only one monthly repayment, one interest rate, and one set of loan fees. You’ll also be able to look at a repayment schedule so you can see how long it will take you to pay off.

The purpose of a debt consolidation loan is to pay out your existing debts.

  • It is a manageable solution for people who are bad with money
  • It is a low interest form of debt
  • It eliminates the potential to accumulate more debt


Is debt consolidation right for me?

If you’re wanting to pay off all your debts sooner and pay less interest overall, then a debt consolidation loan could be worth discussing with one of our brokers.

Have a look at the different debts you currently have. It might be a car loan, a credit card or a personal loan. Credit cards can have high interest rates, and if you’re only making the minimum payment each month, it could take you a long time to pay it off and prevent you from getting a home loan approved in the meantime.

If you are in trouble with debt and it is preventing you from achieving your financial goals, you may wish to consider debt consolidation to get you back on track.


What are my debt consolidation options?

As usual, it depends on your own unique situation and reasons for wanting to pay off your debt. There are a few options when it comes to debt consolidation. To give you an idea, some common debt consolidation options include unsecured debt loans and home equity loans.

Start by making a list of your current debts, repayments and how much interest you are paying and then get in touch with us today to discuss if debt consolidation might be an option for you.


 * All lending subject to status and lenders criteria. Terms & conditions apply. This document contains general information only. Your own personal circumstances have not been considered and you should seek independent financial advice prior to making any decision on a financial product.