Many people with pre-existing debts or financial obligations find value in debt consolidation, but why? A debt consolidation loan involves adding up all of your varied debts and taking out a single loan to cover the total amount. The loan principal is used to pay back the various original lenders, and you only have to focus on paying back the consolidation loan provider, effectively bundling together your existing obligations into a single payment. This can take away a lot of stress from your life, and for many people is a great first step towards financial freedom. If you’re wondering if debt consolidation is for you, Rapid Loans has put together a short list of the advantages of consolidation.
Helping you lead the lifestyle you want
You shouldn’t have to compromise on the lifestyle you want, and when debts start to add up from everything from bills to credit cards and loans, you may need to consider an alternative. Instead of paying multiple creditors and losing money to multiple fees, debt consolidation allows you to do away with it all, turning it into one set of repayments and one set of fixed fees. Simplify your budgeting and more easily allocate money to the things that are most important to you.
Simplifying your payment schedule
Staying abreast of multiple payment schedules can be a headache. Fail to keep any one of several plates spinning perfectly and you could be hit with a substantial late fee. Don’t juggle multiple repayments on various schedules – avoid letting payments slip under the radar with a debt consolidation loans, simplifying your repayments down to a single payment at fixed intervals, tailored to suit your lifestyle and financial situation.
Confidence in what you owe
Managing a whole host of repayments can be stressful, but a debt consolidation loan can give you the peace of mind that comes from knowing exactly what you owe and to whom. A fixed loan term with fixed repayments gives you real certainty, telling you exactly what date you’ll be debt-free.
If debt consolidation sounds like it could be for you, talk to the team at Rapid Loans and let us help you make the informed choice. Visit our website at https://www.rapidloans.co.nz to learn more or contact us with any questions on 0800 727 436 and talk to our consultants.
This is purely an opinion piece and should not be used as a sole source of guidance.