Debt Consolidation Loan - Simplify your borrowing

What is a debt consolidation loan?

A debt consolidation loan is a type of personal loan that is used to pay off multiple debts and combine them into one, allowing you to make one payment each week, fortnight, or month to a single lender.

This loan can be taken out at a lower interest rate than the original debts, meaning you can pay off your debts faster and potentially at a lower cost.

Secured or unsecured?

We offer two types of debt consolidation loans: secured and unsecured.  A secured personal loan is one where you can provide us with a charge over one or more of your possessions as security.

An unsecured personal loan is one where you do not provide us with a charge over one or more of your possessions as security.​

Available security may affect how much you can borrow, and the interest rates you are charged. When you use security on a loan you are in effect guaranteeing that loan with those possessions.

The benefits of consolidating debt

Consolidating your debts into one loan can have several benefits, including:

• Easier to manage – With our debt consolidation loan, you’ll only have to make one payment each month, fortnight, or week instead of multiple payments to multiple lenders. This makes it much easier for you to manage your payments and stay on top of your debt.
• Lower regular payments – Debt consolidations are often spread over a longer period, which can mean your regular payments are lower.
• Improved credit score – Paying off your debt can help improve your credit score, which can open up more financial opportunities for you in the future.
• Reduced interest rates – If you have several high-interest loans, a debt consolidation loan may provide the opportunity to reduce your overall interest rate by consolidating all your loans with a single provider at a lower rate.

FAQs

Do debt consolidation loans hurt your credit?

Debt consolidation loans can have a short-term impact on your credit score due to the initial credit inquiry and the closing of old accounts. However, if managed well, they can improve your credit over time by simplifying payments and reducing your overall debt. Consistently making on-time payments on your consolidation loan can boost your credit score in the long run.

How hard is it to get a debt consolidation loan?

Getting a debt consolidation loan through Instant Finance depends on factors like your credit score, income, and overall financial situation. Instant Finance works with you to understand your unique circumstances and offers tailored solutions, making it easier to secure a loan that fits your needs. A stable income and good credit can improve your chances, but Instant Finance aims to provide options even if your credit history isn't perfect.

Concerned a bad credit score or past finance may affect you when applying for debt consolidation loans?

If you’re wondering if you can qualify for debt consolidation in NZ with bad credit, you’ve come to the right place. We know that things don’t always go to plan, but we’re here to help. As a responsible lender, we listen to your unique loan circumstances and can make lending decisions that are both responsible AND fair for you. Find out more about getting debt consolidation loans for bad credit.

Our knowledgeable and friendly staff are here to help, too and will take the time to understand your current financial situation. Based on your past credit history, our team can establish whether debt consolidation loans for bad credit are available for you and even help you plan a household budget to make sure you stay on top of your loan repayments.

We’ll make sure you understand the terms and conditions of your loan, so you know exactly what you’re getting into. You just need to make sure you make your payments on time to avoid late fees or higher interest rates.

Apply for a personal loan to consolidate your debts today.

It’s easy and simple to apply for a consolidation loan or a debt consolidation loan in NZ for bad credit with Instant Finance. Just follow the steps below:

1. Use our handy repayment calculator to work out what you think you may want to borrow and see what your repayment amounts might be.
2. The fastest way to apply for your Debt Consolidation loan online is through our loan application form. We ask for information like how much you need, what is the loan for, how can we contact you, where you live and how you earn your income.
3. As soon as we receive your loan application, we start working on how we can help make your loan possible.
4. Our friendly team will get in touch with you to discuss your application, request any further information that we might need and finally your loan options.

Once approved, Instant Finance will either provide you with the funds to pay off your debts, or we will pay them directly for you - leaving you with the one simple loan with Instant Finance.

Debt Consolidation Loans: Terms, Rates, and Fees Explained

Loan terms

Our minimum loan term is 3 months, and our maximum loan period is typically 5 years.

Interest rates

Instant Finance provides loans at an annual interest rate from 12.95% to 29.95% per annum.
The rate that applies to your loan will be based on a range of factors including your circumstances, credit history with us or others, the security you can provide and the loan amount.

Once set, our interest rate is fixed for the term of your loan.

Default interest rate

If you get behind in your loan repayments, then we may charge a default interest rate on any overdue loan payments, while they are unpaid. The Default rate that we charge is 10% per annum above the Interest Rate that normally applies to your loan.

On this basis the maximum annual interest rate charged would be 39.95%

Loan fees

We have various fees attributed to your loan which are added to your loan repayments.

Loan Example:

The amount repayable of your loan is made up of your interest rate, plus fees. For example, if borrowing $10,000 repayable over 3 years at an interest rate of 29.95% you would be required to make 156 weekly instalments of $102.54. This repayment is made up of interest, an establishment fee of $220, an ID verification fee of $7.70 and an administration fee of $3.00 per instalment.

Total interest would be $5,300.54 with total fees of $695.7 making the total payable over the full term $15,996.24.