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 settle first? Which one do you pay for the full term? How do you keep all your loan providers happy and your finances well organised?

Introducing your new best friend, debt consolidation loans! Debt consolidation loans are designed to simplify your borrowing and your repayments by doing just that – consolidating multiple existing debts into one easy to manage, fixed interest rate loan.

What is a debt consolidation loan?

‘Consolidation’ when talking about debt, means taking out a new loan which combines existing debt into one manageable repayment. Debt consolidation loans can remove the complexity of juggling multiple loans from multiple lenders and give you the best opportunity to keep your finger on the pulse of your repayments.

How else can a debt consolidation loan help you?

We think the biggest perk of debt consolidation loans is they can make you feel in control of your finances again - but why stop there? Debt consolidation loans can have lots of other upsides.

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. Adding loans with variable interest rates to the equation can make it difficult to work out the total amount you'll end up paying across all of your debts.

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

Managing multiple debts can delay your goals, not to mention the stress of it all! With a debt consolidation loan, take back the reins and close the gap of reaching your financial goal of becoming debt-free. A debt consolidation loan might allow you to pay everything off faster, or at the very least, give you a finish line to run towards.

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 your credit score might need a boost. If you're having trouble juggling multiple repayments, your credit score might also be affected by defaults or collections.

Debt consolidation loans can be the first step towards rehabilitating your credit score. Take your finances back with one manageable repayment and reduce the number of enquiries on your credit report all in one go.

A final consideration

A debt consolidation loan can be really useful but it’s important to consider the drawbacks as well. Term extensions and different interest rates might mean that you end up paying more in the debt consolidation than with separate loans, or you might take longer to pay everything off. Fees and other costs of borrowing still exist for for debt consolidation loans, so it is important to be aware and consider the extra costs. A credit report takes time to rehabilitate, and another loan now will initially have a negative impact on your score. If you are in hardship and are struggling to pay your essentials, a debt consolidation might not be the right fit for you. Make sure to ask questions and make sure the solution you decide is one that works for you.

How do I apply for a debt consolidation loan?

If you think a debt consolidation loan could work for you, we’re here to help! Our knowledgeable staff can help you find the best solution today. Not only does that mean sorting a debt consolidation loan, but also establishing a workable household budget too. Manage your loans in a single package, so that you can take the big steps towards your goals.

For more information on debt consolidation loans, drop into your nearest Instant Finance branch or call us on 0800 760 000. In the meantime, check out our loan calculator to help you get a feel for how much your debt consolidation repayments could be.

Ready to consolidate your debt?

Apply now!