(Everything you need to know about debt consolidation through a small personal loan)
And just like that 2020 is almost done and dusted and the Christmas holidays are fast approaching. There’s no doubt 2020 has been a very challenging year and many people have been forced to rely on extended credit to get by. If you’re struggling with paying off multiple debts, all with different fee structures and repayment dates, then maybe it’s time to simplify your debt management strategy through debt consolidation. There are many lending companies out there (us included!) who can help you consolidate your debts through a small loan so you can get ready for a big Christmas.
What is debt consolidation?
Consolidating your debts means taking out a single loan so you can pay off all of your debts. The major benefit of this is that the new loan usually comes with more favourable terms or a lower regular repayment amount (or both). You can consolidate many types of debts, but the most common is consolidating small loans or credit card debts into a single, manageable loan.
Why should I consolidate my debts?
There are many reasons why you should consider consolidating your debts, especially when you’re facing more significant holiday expenses such as Christmas. Here are some of them:
▶ Only one regular repayment
Managing multiple repayment plans can be exhausting and confusing, with many different payment schedules needed – and on top of all of that you’ve still got to manage your other regular expenses such a groceries, rent and electricity. Consolidating your debts frees you from the stress of having to pay different amounts on different dates - because you only have to make one regular repayment to suit your budget and your pay cycle (you can opt to pay weekly, fortnightly or monthly).
▶ Helps you focus on clearing your debt
When you consolidate your debts, it can help you focus on clearing your debt because you only have one loan to focus on. Of course, that’s going to give you more financial freedom when you are debt-free - Christmas or not.
▶ It may help you improve your credit score
Utilising credit does impact your credit score. For example, if you’ve fallen into the trap of having multiple small loans or credit cards, this can negatively impact your credit score. Consolidating them and paying off a single loan on time, every time can help improve your credit score, and eventually even boost it.
What is the best way to consolidate my debts?
While there may be many options for debt consolidation, one of the best ways to do it is through a personal loan. It’s convenient and helps you clear your debts faster with reduced costs and a simplified, single repayment plan.
What is a personal loan?
A personal loan is an amount of money you can use for a variety of purposes, including debt consolidation, home renovations, or even use it for your dream vacation. It has to be paid over an agreed period of time with regular repayments inclusive of any fees and charges.
How do I consolidate my debts through a personal loan?
Applying for a personal loan to consolidate your debts (or for any other financial purposes for that matter) is pretty straightforward. Everything can be done online and once approved and the paperwork is signed, the money can hit your bank account - usually within a few hours.
Why should I to consolidate my debts before Christmas?
Aussies were expected to spend around $18.8 billion for the Christmas holidays last year. This was for for Christmas travel, presents, food, decorations, and charities. Even though 2020 has had plenty of challenges, this year’s spending probably won’t be too far away from that amount.
However, if you’re in debt, your Christmas plans may not materialise because you need to prioritise paying your multiple debts first. Consolidating your debts into a personal loan can give you the financial ability to make your Christmas plans happen - because some of that financial stress will be lifted.
How can I find a good lending company?
A good lending company understands that unexpected financial needs can happen at any time. They should be able to offer you money-smart options to make life a little easier, especially during the times when you need it most. And with Santa’s arrival just around the corner, they may be able to offer you the financial assistance that can help you still have a Merry Christmas, while making your debts more manageable.
We’re here to help!
If you’re worried about the upcoming Christmas expenses because of your debts, consolidation may be the key. And, if you're looking to pay those debts off and they're up to $5,000, we're here to lend a helping hand. Just take a look at our personal loans to $5K to find out how quick and easy it is to get your hands on some extra funds. Once a loan is approved, we can usually deposit the cash into your bank account within a few hours - so you could still consolidate your debts, and have a Merry Christmas!