Consolidating your Debts: Rolling it all together

Posted August 2016

It doesn’t take much to find ourselves wrestling with a fistful of financial obligations, trapped in a seemingly non-stop cycle of rolling from one repayment to the next.

We all know how it goes… you’re studying, need to buy a car, have a credit card for the random things that pop up, bought a new big screen TV and run into unexpected doctor’s bills. Suddenly the challenge of this host of debts seems like it is going to swallow you whole. But it doesn’t have to; consolidating your debts can return the sanity to your financial world.

For me, that’s just how it was: I had decided to take on studies outside of work, had an unsecured loan on my first car that I hadn’t paid off before taking out a secured loan on my second car, and then you can throw in a maxed-out credit card to boot! After struggling to hold it all together for a while, I decided I had to do something about it. Enter a debt consolidation loan, which saved my back pocket… and my sanity!

What is debt consolidation?

Debt consolidation is just what the name makes it sound like: you take your handful of unruly debts and roll them all together into one easy-to-manage loan, with only one repayment to worry about, and often a lower interest rate as an added bonus.

How does it work?

Consolidating your debts is easy.

All it takes is gathering together the details of your various debts, making sure you don’t miss any, and applying online for a debt consolidation loan. The process is quick and easy, and will have you on the road to financial sanity in no time.

Once your loan has been approved, you can pay out your other outstanding debts, leaving you with only the one loan left to service, and only one payment a month to plan for.

Just one repayment

This has to easily be the best thing about debt consolidation. Managing a handful of different loans, with different interest rates, different payment cycles and different payment methods is a right pain in the neck. Rolling them all together into one means you have only the one interest rate and, best of all, only one regular repayment.

When I consolidated, I had an outstanding unsecured personal loan, secured car loan, a credit card and a direct debit obligation to pay for a qualification I had decided to study. Juggling all of this within my budget was nothing short of a nightmare, but the debt consolidation loan brought it all together into one, and drastically lowered my interest rate; a win all round! The extended loan term also helped me better manage my repayments.

You can do it today!

As a young guy, consolidating my debts was easily one of the best financial decisions I made.

If you are juggling different debts, you too can easily roll them all together into the one easy to manage loan, simply apply for a debt consolidation loan and retake control of your finances today.

To find out more about consolidating debt with NZCU Baywide click here.