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Debt Consolidation in New Zealand

March 9th, 2013 -

A Debt Consolidation Loan is entered into for the purpose of paying off multiple debts by transferring them into a single loan. Debt consolidation loans do not reduce your debt directly, but could be a good way to re-organise your debt, making your goal of being debt-free, more achievable.

The advantages of Debt Consolidation loans:

A lower interest rate in comparison to the average interest rate of the various debts, thus saving you money.

Debt consolidation loans often have a fixed interest rate, essential for secure financial planning.

A debt consolidation loan has a fixed term, giving you peace of mind, knowing when the debt will be paid off.

Reduced fees by avoiding charges from multiple financial institutions

Debt consolidation loans simplify your money management by doing away with multiple bill payments.

Fees and interest rates for debt consolidation loans in New Zealand vary significantly. Care must be taken when considering a debt consolidation loan to ensure that your problem is actually solved instead of creating a bigger problem. Some debt consolidation loans offer a lower monthly payment but may take much longer to pay off, making them attractive in the short term, but not financially sensible in the long term.

How to arrange a Debt Consolidation Loan

At NZCU our debt consolidation loans form part of our review of your finances, to ensure that all the above criteria for a sensible debt consolidation loan are met. With NZCU, you will receive a highly individualized service. We will work with you to help define your short, medium and long-term goals and help establish a savings programme or arrange a debt consolidation loan which will start you on your journey to financial freedom.

Contact us today to book your free consultation to find out how we can help you get out of debt, save money and reach your goals faster. You can also  apply on line for your debt consolidation loan and we will be in touch.

 

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