If you’ve found yourself with multiple debts or outstanding loans, managing them all can be really stressful and apply a lot of pressure to your financial situation. Which one do you pay off first? Which one takes the back foot for now? And how do you keep all the loan providers happy? Introducing your new best friend, debt consolidation loans, which are designed to simplify your borrowing and your repayments by doing just that – consolidating all existing debt into one easy to manage fixed interest rate loan.

Firstly, what is a debt consolidation loan?

‘Consolidating’ when talking about 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 puts them together into one loan with one repayment to make.

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

There are lots of perks of a debt consolidation loan, but we think the best is that they can make you feel in control of your finances again. It’s an easy way to focus on just one repayment, helping you clear your debt faster and get back on top of your finances.

Here are some ways a debt consolidation loan can help you…

A fixed interest rate

We know how confusing it can be having multiple loans with different interest rates. It may even be difficult to calculate the total amount you’ll end up paying across all debts, especially if the interest rates aren’t fixed.

We can help with that! At Instant Finance, we’ve helped to simplify the debt consolidation process by making sure interest rates are fixed for the life of your loan. This means you’ll always know the exact amounts of your repayments, helping you to budget effectively and stay on top of your finances.

Get rid of debt faster

Having to manage multiple debts can often delay your future goals, not to mention the stress of it all too! The good thing about a debt consolidation loan is that it can eliminate the stress of your existing debts and roll them into one easy to manage loan at a fixed rate, closing the gap of reaching your financial goal 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 best option for you.

Improve your credit score

If you have multiple debts, you may find that your credit score needs a boost. When you juggle your debts or are consistently making late payments on multiple overdue accounts, it can significantly damage your credit score.

A debt consolidation loan can work to improve your credit score by helping you stay on top of the one repayment rather than manage multiple and can help you get back on the road to rebuilding your credit again.

So, how do I apply for a debt consolidation loan?

If you think you need a debt consolidation loan you’re in luck because we’re here to help! Our knowledgeable staff can not only help you with debt consolidation but can work with you establish a workable household budget so you can stay on top of your loan repayments as well as manage your everyday expenses.

For more information on debt consolidation loans, drop into your nearest Instant Finance branch or call us on 0800 760 000. In the meantime, have a play around with our loan calculator which will help you get a feel for the repayments necessary.