Debt consolidation is the act of combining all of your existing debts into one easy to manage loan.
Doing so saves you money as you'll be paying a much lower interest rate than you are now. It also makes it easier to manage your finances as you only have the single monthly repayment. No more juggling paperwork for multiple debts or sending payments to numerous creditors. It's that simple.
Managing your debts isn’t easy. You have multiple loans, debts, and credit cards. Each with varying interest rates. All due on different dates, with payments being sent to different accounts. It's enough to drive the average Kiwi crazy.
Thankfully, consolidating your debts makes it easy to rid yourself of this financial burden.
In fact, it’s a process that you can complete in just 3 easy steps:
That’s it! Simple, right?
You’re now ready to leave the burden of your debts behind and reap the benefits of debt consolidation and the many ways in which it can make your life easier. With just one loan to repay, and just a single monthly repayment to manage, you’re now free to get back to living your best financial life.
So now you know just what debt consolidation is, as well as how it works. That’s all well and good, but how does it work for you or your family out there in the real world? That’s a good question. In the following example, we’re looking at just how much a debt consolidation loan can help the average New Zealander just like you pay down their debts and live a stress-free financial life.
Running the math on James’ debts, he currently pays - on average - 16% interest each and every year. But it doesn’t have to be this way. By consolidating his debts, James could quickly and easily roll all of these individual loans into one. This would save him the stress of having to remember - and plan ahead for - various due dates, give him extra time to pay it off, as well as save him money with a much lower interest rate.