What is a debt consolidation loan?

In today’s climate, accumulating multiple sources debt can be common for many people. Managing multiple debts at once, e.g. credit cards and other personal loans, can be overwhelming and tricky to manage at once. In this situation a debt consolidation loan can be a helpful step towards taking back control of your financial situation.

What is a debt consolidation loan?

A debt consolidation loan allows you to combine multiple debts into a single loan with one scheduled repayment and interest rate. This makes managing your debt easier without having to manage multiple repayments and debt balances at once. Debt consolidation loans can sometimes provide you with a lower interest rate than your existing debt, saving you money over the time it takes you to pay off the debt.

What are the benefits of a debt consolidation loan?

There are multiple benefits a debt consolidation loan can provide if you are currently managing multiple loans or credit card debt:

1. Easier payments to manage

Having just one scheduled repayment is easier to track and manage into your budget.

2.      Potentially lower interest rates

Depending on your affordability, you may be eligible for a lower interest rate than your current debts. Allowing you to save money over time.

3.      Reduced stress

Being able to simply manage one loan instead of multiple can potentially reduce financial stress and pressure.

A debt consolidation loan can be a significant step towards paying off your existing debt and a positive step towards financial stability, especially when used alongside budgeting, saving and positive spending habits. However, it’s important to do your research to help make the decision that’s right for you. Depending on what your need is and your financial situation, a debt consolidation loan may not always be the best solution.

With a Dosh Debt Consolidation loan, you can access totally digital borrowing by being able to apply, manage and repay your personal loan at your fingertips. Borrow between $2,000 and $75,000, unsecured, for up to 7 years. Dosh Personal Loan interest rates are fixed between 16.25% and 19.95%. T&C’s apply.

Apply for a Dosh Personal Loan here.