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Debt consolidation loans

Debt consolidation can help reduce the stress of multiple debts and interest rates. We explain how it typically works.

Paying off more than one debt at a time is not uncommon. But if you’re struggling to balance your debt repayments, debt consolidation may well be worth considering.

Debt consolidation is bringing all your existing debts together into one new debt, which can help you manage your repayments and give you a clearer picture of your financial future. You typically do this by taking out a new personal loan to repay your other existing debts, and then paying this new loan back over a set term.

The key advantages of consolidating your debt are:

  • A potentially better (lower) interest rate
  • Repayments that are easier to manage
  • A means of providing a clear timeline outlining when you’ll be debt-free

Taking out a personal loan can also help with your budgeting. Instead of just having to make minimum repayments as you do on credit cards, you’ll have to make set repayments that cover both the loan amount and interest, which you know will end at a certain date.

At Melbourne Finance Brokers, we understand that debt consolidation is tricky and is the overwhelming debts are stressful, but we are here to help. Contact us on (03) 9091 9490

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