How Debt Consolidation can save you time and money

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Managing your money

If checking out your bank account or planning your budget means taking into account repayments on loans, hire purchases, store or credit cards, that never feel like they're getting smaller, the whole process can leave you feeling disheartened and discouraged. If this sounds familiar, you're not alone. 

It's no surprise that financial stressors like hard-to-tackle-debt are a contributor to some of the mental health and relationship difficulties Kiwis' admit to facing. The good news is that managing your debt and lightening the load on your bank account, and mind, may not be as difficult or scary as you might think. 

Combining your debts by taking out a debt consolidation loan can save you money, make your life admin just a little bit easier, and make you feel better too. It means fewer worries about how to manage debt and more time to focus on things you enjoy spending time doing. 

How does it work?

Suppose you have multiple sources of debt, including credit cards, loans, and hire purchases, all of which have different repayment rules and interest rates. While you're making minimum repayments or paying off a lot of interest and not much principal, you're essentially treading water and not reducing any of your debt.

Debt consolidation is when you roll up those multiple sources of debt into one single loan, from one provider.  
By moving your high-interest debt into one place, you can benefit from a lower interest rate on the new loan. You'll also be paying off more of the principal, meaning your debt starts to shrink. 

Check out Sorted's debt calculator to see how much interest you're paying right now, plus how much money and time you could save by increasing repayments or consolidating the debt at a better interest rate. Our rates for debt consolidation from 9.50% per annum. 

How will debt consolidation help?

Knowing that everything is under control and that you have a date to look forward to when you're debt-free is a feel-good moment in itself, but think about the flow-on effects. Fewer sleepless nights worrying about money, less stress & anxiety, and a clear and manageable goal that you're on the way to achieving. 

How can I get a debt consolidation loan?

Our personal loans can be used for any purpose, including Debt Consolidation. Apply for a consolidation loan to get your debt under control and head toward financial freedom faster.