What are debt consolidation loans and how can they help me?
Managing multiple debts from multiple lenders can often be an overwhelming and stressful experience, and in extreme cases, can lead to financial hardship. Debt consolidation loans are designed to simplify your borrowing by consolidating all your existing debts into one easy to manage fixed interest rate personal loan.
What is a debt consolidation loan?
‘Consolidating’, in the context of debt, means taking out a new loan which is used to either instantly pay off all or significantly reduce other existing debt. In simple terms, a debt consolidation loan removes the complications around juggling multiple loans from multiple lenders.
Benefits of debt consolidation loans
Let’s take a look at how a debt consolidation loan can help you.
Fixed interest rates
If you have multiple loans with varied interest rates, it may be difficult to calculate the total amount you’ll end up paying by the end of the loan term, especially if interest rates are not fixed.
At Instant Finance, our interest rates are fixed for the life of the loan, so you’ll always know what your repayments will be.
Getting rid of debt faster
The weight and burden of managing multiple debts can often deter future financial goals and carry with it unnecessary stress and anxiety. A debt consolidation loan can provide instant relief by rolling all existing debt into one easy to manage loan, enabling you to reach your goals of becoming debt free faster.
Talk to one of our friendly, knowledgeable staff about whether a debt consolidation loan is the right option for you. They will take the time to understand your current financial situation and find the best solution that works for you.
Debt consolidation loans can also help you improve your credit score. For example, if you are consistently making late payments on multiple overdue accounts, you may be significantly damaging your credit score. By consolidating all existing debt into one easy to manage loan, staying on top of repayments becomes a lot easier, and will get you back on the road to rebuilding your credit again.
Looking for budgeting help? Read our blog on financial tools to help save you money.
The burden of managing multiple debts, from multiple lenders, can be detrimental not only financially, but also to your overall wellbeing. High interest rates, late repayment fees and bank charges can often lead to a sense of entrapment, making it extremely difficult to find a way out.
At Instant Finance, we can help you with consolidating all of your existing debt into one manageable loan at an interest rate that is fixed for the life of the loan. Our friendly and knowledgeable staff can also help you establish a workable household budget to stay on top of your loan repayments together with your everyday expenses.
Drop in to your nearest Instant Finance branch, or call us on 0800 760 000.