FAQs
Will consolidating my debt save me money in NZ?
It depends on what you're currently paying. If your existing debts carry higher interest rates than the rate you're offered on a consolidation loan, you could end up paying less overall — but if your loan term is a lot longer than your current debts, you might pay more in total interest even at a lower rate, just spread over more time. It's worth running your actual numbers through our loan calculator before deciding, rather than assuming consolidation automatically costs less.
Are debt consolidation loans available to people with imperfect credit?
Yes, they can be. We don't rely on your credit score alone to make a decision — we look at your income, your current situation, and your ability to manage the new repayment. A less-than-perfect credit history doesn't rule you out, though approval always depends on your individual circumstances and our responsible lending obligations.
Can I consolidate debt if I have defaults or judgments on my file?
Having defaults or judgments on your credit file may not be an automatic no. We take the time to understand your full situation — including what's changed since those defaults or judgments were recorded — before making a decision. It doesn't guarantee approval, but it doesn't rule you out either.
How do I consolidate credit card debt with a personal loan?
You apply for a debt consolidation loan for an amount that covers your credit card balance (and any other debts you're bringing together), and once approved and accepted, we either pay your credit card provider directly or pay the funds to you to settle it yourself. From there, you're making one repayment to us instead of your card repayment and any others you've combined.
What should I consider before taking out a debt consolidation loan?
A few things worth thinking through whether your new loan term is longer than your current debts (which could mean more total interest even at a lower rate), that there are fees involved just like any loan, and that a new loan application and closing old accounts can have a short-term dip on your credit score before it improves.
If you're behind on essentials rather than just juggling multiple debts, it's worth talking to us first — we can help you figure out if consolidation is the right move, or whether something else makes more sense for your situation.
Do debt consolidation loans hurt your credit score?
There can be a short-term impact, mainly from the credit check when you apply and from closing old accounts. Over time, making consistent, on-time repayments on a single consolidated loan can help your credit score recover and improve.
