The benefits of debt consolidation
Combining multiple debts into a single loan can offer a number of benefits.
One loan can be a lot easier to manage and more convenient than juggling several different debts. You have less paperwork to deal with as you only receive one set of statements, and you have the added convenience of dealing with one lender with a single point of contact.
Debt consolidation could also make it easier to budget for loan repayments. Rather than managing several separate repayments at various times of the month, you only need to make a single monthly repayment.
The biggest benefit of debt consolidation is the cash savings it may provide. By consolidating your debt into a loan charging a lower interest rate, you have the potential to enjoy big savings on the monthly repayments and cut hundreds – even thousands of dollars from your overall interest bill.
You could also save on loan fees and charges as you pay the costs for one loan instead of paying several sets of ongoing fees.
By reducing your interest rate and monthly repayments, debt consolidation could help become debt free sooner.
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