Debt Consolidation Loans

What is Debt Consolidation?

It can happen to all of us.

Sometimes, we can find that we have taken out store cards, credit cards, car loans, personal loans, loans from family – all sorts of loans, to cover all sorts of expenses.  Before long, we have lots of debts and lots of repayments to juggle.  This can become stressful.

A debt consolidation loan adds up all your smaller debts and then pays them off with just one overall loan product called a debt consolidation loan.

Often, by ending up with just one loan, you can save on the interest you were paying across all the smaller loans.  It also means that you can concentrate on just repaying the one loan, hopefully helping you get out of debt quicker.

Because a debt consolidation loan has a set end date, it means you’ll know exactly when it will be paid back by.  Not to mention the likelihood of missing a loan repayment is reduced, helping ensure your credit score is protected.  Having a good credit score is very important to obtaining a finance approval and also to obtaining a competitive interest rate.

The best things about organising a debt consolidation loan

• Take Back Control –You are taking back control of your financial future
• Simplify Payments – You end up with just one regular loan repayment that has a fixed end date so you know when you will be debt free
• Improve Budgeting – Your repayments are fixed so you can budget better
• Potentially Reduce Your Interest Bill – The interest rate is often lower than the rate you currently pay, especially credit cards
• Pay It Off Quicker – In most cases there’s no interest penalty for early repayment so if you want to pay it off quicker you can
• Help Protect Your Credit Rating – With only one repayment to manage instead of multiple payments, you are less likely to miss a repayment

While getting a debt consolidation loan can be a wise financial decision under the right circumstances, it may not help resolve the underlying problems that led to your current debt, like overspending or failing to set aside money for emergencies. To help you decide whether getting a debt consolidation loan is the right way to pay off your debt, our Personal Lending Advisers work with you to understand your situation and needs, and walk you through the advantages and disadvantages of debt consolidation to help you make an informed decision. Get in touch with us to discuss your financial needs and how we can assist!

Do I need to provide any security?

If you meet the credit criteria then it’s likely security won’t be needed. This is called an unsecured personal loan.  But if security is required then we might be able to use something like a car.  This is called a secured personal loan.

How much can I borrow?

How much you can borrow will depend on your individual situation.  It will also depend on how much you need and how much you can afford.  Check out our handy loan calculator to help guide you.

Where can I find out more Information?

Please check out our finance blogs.  Here we discuss debt consolidation loans in a lot more detail.  Also, we are only a phone call away and always more than willing to help.  Please call one of our friendly team on 0800 ASK MAX (0800 275 629)!

Join our other customers and take back control of your finances

We have helped thousands of New Zealanders take back control of their finances and pride ourselves on our outstanding customer service.

Apply directly online with our quick and easy application form.

We look forward to being able to help you.

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