Your guide to the benefits of debt consolidation

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  • How much do you need? Gather up all of your outstanding debt and add it up. This is your existing debt and the amount you’ll need to borrow. Don’t forget to include any fees and charges that might apply.  
  • How much are you currently paying? This will give you an idea of how much you can afford in repayments and help you understand what you might save by consolidating your debt.
  • How long will you need to repay? It’s time to do some maths. Divide the loan amount by your monthly repayment to get a ballpark amount of the time it will take to repay the loan.
  • Decide between secured or unsecured? Are you confident in your ability to repay the loan and own an asset of value? If you’re willing to put up security against the loan, you can consider a secured loan. This will get you a better rate, however, the lender has the right to sell your asset if you can’t repay the debt.
  • Fixed or variable? Do you want to know how much your loan will cost down to the cent, or are you happy to ride the waves of the market for a possible saving of a lower rate? Consider whether a fixed or variable interest rate would be best for you.

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