Consolidate and Reduce Your Payments – Today!

Every time you apply for credit, your credit score can temporarily drop slightly. However, if you then start making all your repayments on time and reduce your overall level of debt, your credit score will improve. It’s easier to do that with a low-interest debt consolidation loan.

This depends on the debt consolidation lender’s criteria, but you will usually need a credit score of around 650 or higher. You may be able to get a debt consolidation loan with a lower score, but you’ll usually be charged a higher interest rate.

You can check your credit score with credit reporting agencies like Experian before you make your debt consolidation loan application.

Yes, debt consolidation can simplify debt management and reduce the number of payments you have to make. However, consolidating debt can sometimes lead to longer terms and higher interest, so it’s important to weigh the potential benefits against the costs. Additionally, it’s important to address the underlying issues that led to the debt in the first place, such as overspending or a lack of financial planning.

One of the main drawbacks of consolidating debt is that it can result in paying more interest over the life of the loan. In addition, debt consolidation may not address the underlying spending or budgeting issues that led to the accumulation of debt in the first place. Some lenders may also charge fees or require collateral, making consolidation less accessible for some borrowers whose financial circumstances are already limited.

PA is an acronym that stands for ‘per annum’, which means ‘per year’. A ‘comparison rate’ is the cost of interest plus any loan fees and charges. You should always use the comparison rate when evaluating the total cost of different loan products. The loan with the lowest comparison rate is the cheapest.

This depends on a range of factors including the:

• loan amount
• loan terms and conditions
• comparison interest rate on your consolidation loan versus the rates on your other debts

The table below shows the annual interest charged on $50,000 worth of multiple debts at a range of loan interest rates. As you can see, a lower interest rate makes a significant difference. We have a debt consolidation calculator you can use to determine whether it’s financially beneficial to consolidate your debts.

You can take out a loan to pay off multiple debts, leaving you with just one payment to make each month. This is known as debt consolidation. Another option is to work with debt consolidation companies who can assist you in consolidating your debt. It’s important to carefully research your options, taking any fees or potential impacts on your credit score into account before deciding.