The end of the year can always feel overwhelming, particularly from a financial perspective: gifts to purchase; family gatherings to cater for; or paying for a holiday. The commencement of a new year will hopefully bring you feelings of a 'fresh start' and your approach may begin with reviewing financial expenses to see what possibilities there are to reduce expenses or debt, or to save money.
If you are wanting to get your debt under control, debt consolidation may be a way to achieve this.
What is debt consolidation?
Debt consolidation is simply combining all of your debts into one loan and repayment obligation. It involves you taking out a new personal loan to pay off your existing debts. You can combine multiple debts such as credit cards, store cards, car loans, student loans and any other personal loans into one debt. This can help you by:
- Simplifying your financial situation into one loan, which makes it easier to manage your repayments.
- Easing your cash flow by reducing your monthly repayments or fees payable.
What you'll need to consider
According to the Moneysmart website you should compare what the interest rate and fees are on the new loan against what you are currently paying on your existing loan. This is to ensure you don't end up in more debt or paying higher repayments and fees.
It is also important to review any exit and penalty fees that come along with paying out your existing debts early.
We're ready to help you
Unlike most personal loans, the rate on our award-winning Fair Rate Personal Loan is guided by your credit worthiness – so you may even be rewarded with a better rate based on your borrowing history.
Unsure if debt consolidation is right for you?
- Read our debt consolidation FAQ for more information.
- Talk to one of our Mobile Lenders or contact us directly.
At G&C Mutual Bank we are here to help you with all your banking needs.
Any advice or information provided on this site is general advice only, and does not take into account your personal objectives, financial situation or needs. Before acting on any general advice you should consider its appropriateness given your personal circumstances. You should consider the Terms and Conditions for a product before acting on any advice to acquire it. Please consult with a financial adviser for personal financial advice.