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 loan.

Firstly, 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 of juggling multiple loans from multiple lenders, and putting it together into one loan with one payment to make.

How can a debt consolidation loan benefit me?

Let’s take a closer look at how a debt consolidation loan can help you.

A fixed interest rate

If you have multiple loans with different 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 on debt consolidation loans are fixed for the life of the loan, so you’ll always know the exact amount of your repayments so you can budget effectively.

Getting rid of debt faster

The stress of managing multiple debts can often delay future financial goals and carry with it unnecessary anxiety. A debt consolidation loan can provide the financial tool to instantly eliminate of all your existing debts with one easy to manage loan, at a fixed rate, over a loan term that works for you closing the gap of reaching your financial goals of becoming debt free faster.

At Instant Finance, our staff take the time to understand your current financial situation and work with you to find the best solution that works for you.

Talk to one of our friendly, knowledgeable staff about whether a debt consolidation loan is the right option for you.

Improving your credit score

A debt consolidation loan 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.

Staying on top of repayments becomes a lot easier with just one easy to manage loan, and can help get you back on the road to rebuilding your credit again.

Final word

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’re here to help. Our friendly and knowledgeable staff can not only help you with debt consolidation, but can also help you establish a workable household budget so you can stay on top of your loan repayments as well as manage your everyday expenses.

Drop in to your nearest Instant Finance branch, or call us on 0800 760 000.