People often assume that to apply for a debt consolidation loan, you need to have big debt problems or be in serious financial trouble. But in reality, there are times when all of us would find it useful to relieve some pressure and have some extra time to get on top of things.
For most of us, debt is part of life, whether it’s interest on credit cards, personal loans and even day-to-day bills. It’s natural to feel overwhelmed sometimes, so if that’s you – don’t panic!
The key is to get some breathing space and not to wait until things get desperate. A debt consolidation loan can bring all your loans and outstanding bills together, making them easier to manage via single monthly repayment. Doing so can often save you money too, by reducing the overall amount of interest you have to pay.
Here’s what a personal loan to consolidate higher interest debt could do for you:
Stay in control
If you find yourself regularly making minimum payments, or simply feel that you’re spreading yourself too thinly, feelings of guilt and uncertainty can soon set in. Having a loan with a fixed end date means you have a road map getting everything paid off, and a plan to be debt-free. It can also make it less likely that you will fall behind on your payments and risk harming your credit.
Reduce the interest you pay
Depending on your situation, your debt consolidation loan will often be at a lower rate of interest than the individual debts it replaces, saving you money each month. You also only have one interest rate to keep track of, making it easier to budget.
Spread your debts
A debt consolidation loan gives you the flexibility to spread repayment over a longer period if you need to, reducing the chunk of your monthly outgoings that it spent on bills. It may even leave you with enough left over each month to begin building your savings, which over time will give you a buffer against future problems.
Get your financial independence
When you are struggling to stay on top of things, the idea of ‘financial independence’ seems a long way off. But by taking the initiative and being proactive in managing your debts–rather than letting them manage you–that freedom can be closer than you think.
The key? Make a plan and stick to it. Soon enough you will be able to plan to spend your money as you want. The reward isn’t just the money you save. It’s the peace of mind and confidence from knowing you’re fully in control.
If you want to know more about a debt consolidation loan, applying, and how it works, come and visit us at one of our branches or get in touch with your questions. One of our team will talk you through the options and how a debt consolidation loan may be right for you.
Use our handy loan calculator to find out how much you could borrow in order to pay off your existing debts