Are you struggling to pay off a whirlwind of debt that has built up over time? This kind of situation can lead to stress and financial instability when not dealt with properly. Why Not Finance, one of the leading providers of online loans in NZ, has a potential solution. Loan consolidation can be a great option to simplify and streamline debt. We go through the benefits of loan consolidation.
What is Loan Consolidation?
Loan consolidation in NZ is the act of taking multiple existing debts and packaging them into a larger consolidated loan. This can come from a wide variety of debt types, from short-term loans to long-term loans. This new loan will typically be with a trusted provider such as Why Not Finance who will determine new terms for this re-packaged debt.
The Benefits
So, why do people use loan consolidation?
Streamlines Finances
Debt comes in all sizes and can quickly add up to a significant cost over time if not managed correctly. It can often cause extreme disruption to a person’s life if they are constantly being bombarded with payment requests, late payment fees, or additional loan offers from their existing providers.
This is where consolidation of those debts can help massively, by taking the complication out of the equation with one loan and one loan provider who you trust. This streamlined approach will reduce stress and make repayments clear and simple so that you can understand easily how much you need to pay and when.
Can Help You Pay Loans Off Faster
By streamlining your debts, you then have the information you need to form a tidy and effective repayment plan. The clarity of having just the single loan can help you to balance a weekly or monthly budget so that you know where you can save on non-essentials to make sure you are paying off your interest on time.
Higher and more frequent repayments mean you will save on longer-term interest and put yourself in a better financial spot. Not to mention, by avoiding any late payments and associated fees, you will start to raise your desirability to lenders so you can take out loans easier in the future when needed.
Can Sometimes Mean Lower Interest Rates
Often people will enter into a flurry of short-term loans during hard financial times just to stay afloat. But this can often be financially devastating over the long term, as the higher interest rates associated with short-term loans can really add up. Depending on the loans you have taken out, their volume, and existing rates, you may actually end up with a much better deal by consolidating these debts.
To find out if this applies to you, speak with the experts at Why Not Finance who can determine transparently and honestly what financial rates can be applied and whether loan consolidation will save you money on this interest.
Enquire About Loan Consolidation Today
For all your loan needs including loan consolidation in NZ, get in contact with Why Not Finance. We are a trusted financial institution whose goal is to make sure our clients are conscious and deliberate on the loans they take out while offering the best rates possible to make everyone happy. Apply now for loan consolidation and take control of your finances.