How does debt consolidation work?
Say, for example, you have two different credit cards with debts of $3000 and $4000 each, and a personal loan with a debt of $7000. Each of these debts will likely have a different interest rate, repayment amount and due date, making it challenging to stay on top of them all.
To help simplify your financial situation, you can consolidate all these debts into one personal loan. This allows you to have just one set of recurring repayments to make over a set term, with a single interest rate.
If the interest rate on the personal loan is lower than your existing debts, this can also help you get ahead in reducing your overall debt.
You can use a personal loan repayments calculator to work out what…
