Consolidating your debt
Debt consolidation is when you take out one loan to cover all your existing repayments. If you have a number of debts with different interest rates, it may be a good idea to consolidate your debt.
Here are some of the benefits of consolidating debt.
- All your debts are in the same spot, making repayments easier to manage.
- You make just one repayment, usually at the end of the month.
- You can save on the interest you pay by choosing a loan with a lower interest rate.
- You save time, effort and paperwork.
Keep in mind that if you don’t do your research, you may pay even more interest and fees on your new loan. And if you’re tempted to borrow more, you might get further into debt.