Last Updated on Oct 14, 2022 by James W
Having accrued a small debt is a terrible feeling. It can cause stress and anxiety and lead to sleepless nights. And quite often it is not your fault as fees have gone up or added unplanned expenses suddenly rack up. You add up the different debts and repayments that are required, and it doesn’t paint a pretty picture, but it doesn’t have to be that way.
A chat with a friend who has faced a similar situation reveals that a great solution is offered by debt consolidation loans from Cashify Australia. A debt consolidation loan is a great idea for 5 sound reasons.
- Your current debts require paying high interest. A debt consolidation loan will cover the other debts and pay them off, allowing you to pay your new loan off at a better rate of interest, thus saving money. Paying off a credit card is a good idea as they generally charge a high interest rate.
- You are juggling several monthly payments. The debts are increasing so you wish to pay them off and consolidate with just one monthly fee to offer a peace of mind knowing that the multiple monthly bill reminders are a thing of the past. Maybe doing some part time work blogging will bring in some extra income for additional treats.
- The advantage of a single monthly payment. It allows planning knowing that repayments are due on just one date each month, thus avoiding confusion and the possibility of overlooking when other payments are due which can lead to increased debt.
- To sort your long term finances out. Repayments on credit cards are generally flexible and it’s easy to not pay back as much as you could each month. By agreeing a new consolidation loan, the timeframe can be set to get it paid off quicker and to reduce interest payments. The sooner it is paid, the earlier you can afford special treats again without plunging yourself into debt.
- Boost your credit score. Bringing all your debts under one umbrella following a series of on-time payments to the loan you will start improving your credit as lenders like to see consistent, on-time payments. By combining several debts into a single consolidation loan allows easier to make payments and boost your score in the process.
A debt consolidation loan will save money, save stress and unplanned charges in a shorter period while improving your credit score.