Consolidation Loans – 5 Reasons It’s Your Best Way To Get Out Of Debt
Consolidation loans are usually given by a lender that will take control of your debt and collect payments from you, and then make all the payments to your creditors on your behalf, giving you immediate financial relief. You’ll then only have a single payment to make that you can afford on a new loan. It’s useful if you defaulting on a lot of different debts with different terms and interest rates from different creditors.
What is Debt Consolidation?
Debt consolidation is the process of taking out a new loan to pay off multiple debts instantly. This can be an effective way to get out of debt because it can lower your monthly payments, improve your credit score, and save you money on interest.
There are two main types of debt consolidation in New Zealand: consolidating with a personal loan from Quickloans, or consolidating with a balance transfer credit card.
- Personal loans for debt consolidation can be obtained from Kiwi online lenders such as Quickloans, Crester Credit, etc. The interest rate on a personal loan will sometimes depend on your credit score and repayment history, but personal loans typically have lower interest rates than credit cards.
- Balance transfer credit cards offering 0% for a promotional period, usually 6-12 months. This can be an effective way to consolidate debt because you can save on interest and pay off your debt faster. But make sure you understand the terms of the balance transfer before you apply. Some balance transfer cards have fees that can offset the savings you’ll get from the 0% APR offer.
Why should you consolidation loans?
Debt consolidation is one of the most effective ways to get out of debt. By consolidating your debts, you can get a lower interest rate, which will save you money over time. Additionally, consolidating your debts can help you get out of debt faster by reducing the number of payments you have to make each month.
If you’re struggling to make ends meet each month and are tired of feeling like you’re trapped in a never-ending cycle of debt, getting fees for missed payments, and your debt seems to be growing, not reducing each month, then consolidating your debts may be the best solution for you. Not only will it save you money in the long run, but it can also help reduce the amount of stress you feel.
To get a debt consolidation loan from Quickloans, you must be a New Zealand resident and at least 18 years of age. You’ll also need to provide a suitable form of security.
If you’re interested in consolidating your debts, then please don’t hesitate to get in touch with Quickloans today. We’d be more than happy to discuss your options with you and help you find the best solution for your financial needs.
Who Should Use Debt Consolidation?
Consolidation loans are the best way to get out of debt for many people because it offers a single monthly payment, lower interest rates, and other benefits.
If you’re struggling to make ends meet each month, and your debt is growing, consolidating your debt into one monthly payment may be a good option for you. By consolidating your debt, you could potentially save money on interest and get out of debt faster.
There are several types of debt consolidation loans available, so it’s important to compare your options to find the best fit for your situation. You can use our Debt Consolidation Calculator to see if consolidating your debt is right for you.
How Does Debt Consolidation Work?
Debt consolidation is the process of combining multiple debts into one single debt. The lender will pay off your debts on your behalf, and immediately which improved your credit score, or at least stops it from deteriorating further.
If you’d like to check your own credit score, check it here.
There are many benefits to consolidating debt, including:
- Reduced interest rates: When you consolidate debt, you may be able to get a lower interest rate on your new loan. This can save you money over time and help you get out of debt faster.
- One monthly payment: Consolidating your debts into one loan means you’ll only have to make one monthly payment. This can simplify your finances and make it easier to stay on top of your payments.
- Improved credit score: Making on-time payments on a consolidated loan can help improve your credit score. A higher credit score can lead to better interest rates on future loans and lines of credit.
- Reduced penalties: If you were defaulting on your previous loans because you couldn’t afford them, the new loan will usually be a lesser amount each week to pay and assuming you make all payments, you’ll avoid penalty fees.
If you are in a financial hole that keeps digging itself deeper, then please connect with us as soon as possible. Our Quickloans staff can assess your situation and give the best advice possible. If consolidation loans are right for you, then within just a few days, your stress could be dramatically reduced and you’ll be on your way to improving your credit file.
by Mark Benson
Mark Benson, a renowned and astute stockbroker/financial adviser spending the majority of his finance-related career operating in the United Kingdom. With 16 years+ experience in the financial sector. he still maintains a strong interest in all things financial. Over the years, he has written about subjects such as property finance, loans, pensions, insurance, stock market investments, tax planning and more. Mark believes it is essential to keep up with the latest financial regulations and adapt your finances accordingly, something he portrays in his financial articles.