It can be a little difficult keeping your head above water in today’s increasingly competitive world and each week can become a milestone that we have to get beyond, in order to pay our bills and to try to get ahead. The bills keep piling up and it gets to the point that you don’t know when one billing cycle begins and another one ends. Many of us in New Zealand have outstanding debts and having to deal with them all at different times can be quite stressful. However, there is help on hand in the form of a debt consolidation loan and there are many advantages to getting yourself one. Let’s look at some of them now.
ü Single Payment – This says it all really. You take out only one loan that will cover all the other debts. This loan allows you to pay off all the other money you owe and then allows you to only have to think about one single payment every month. The days of having to remember all the different dates each bill is due are gone and now you have one single date in your calendar when a payment has to be made. Doing it like this gives you more focus and allows you time to think about how you can maybe pay the loan off earlier or how you can easily come up with the monthly payment. In a lot of cases, your monthly payment will be less than before because you have a longer period of time to pay it.
ü Massive Reduction In Stress Levels – Having to think about many different bills all coming in at different times of the month doesn’t give you any time to think. When you are not able to think you feel overburdened and you are constantly thinking about where you are going to get the money for the next bill. Most of us get paid weekly or monthly and if the debt is due mid week or mid month, it can sometimes be impossible to get the money together. You can’t function properly and so debt consolidation loans allow you to create some space between you and what is owed. It gives you time to focus and stop worrying yourself about your debt.
ü Lower Interest Rate – This is the key aspect of taking out the consolidation loan. You may be able to negotiate a lower rate of interest for the lump sum and many people are caught up in credit card debt that can charge extortionate rates and penalty fees if you are late with a regular monthly payment. It is fair to say that you will find a rate much lower than that of credit cards and this will be your first step towards addressing your outstanding bills. The money saved over the life of the loan may allow you to spread out your payments more and also to reduce them.
A consolidation loan is the way to address multiple loans that you have to pay out on. Just borrow one lump sum of money. Pay off all your other debts and then just concentrate on meeting one payment.