Debt Consolidation Loan - DebtFix NZ

Debt Consolidation Loan

Could rolling all your debts into one repayment take away the stress you feel when it comes to paying your bills each time?  A debt consolidation loan may even have lower interest rates which could save you money! 

We aren’t able to direct you to a specific provider of Debt Consolidation loans at this time, but there are plenty of them out there from new crowdfunding platforms, traditional banks, finance companies and credit unions to name a few. You do need to be very careful at looking at the terms and conditions of the new loan you may be taking out, and indeed the ones that you may be paying off, as early repayment might actually cause charges that you might not have factored in.

We’re happy to talk through this option with you at Debtfix. We are restricted to discussing this option in general terms only, but we will be able to see if this is a possible option for you.


How does a debt consolidation loan work?

You take out a loan with one provider for the purpose of paying off all of the other providers or creditors that you owe money to, so that you  end up with just one repayment. 

Some things you need to be aware of are:

  • although the new  repayment is quite often less, the loan repayments will generally be for a longer period, which means you may end up paying more than you would have done originally;

  • you may pay higher interest rates than those associated with your original debts. Interest and fees may increase the amount you owe in total;

  • sometimes a debt consolidation loan may need to be secured against some of your property, and therefore if you default on payments, you may be at risk of losing that item.


Who can benefit from a debt consolidation loan?

Debt consolidation loans are not the right solution for everyone, but you may be a suitable candidate if you have a stable job with a steady and consistent stream of income and have a good credit rating.