Debt consolidation: What you should consider


Managing an array of debts – whether it is personal loans, credit cards, car loans or other small debts – can become overwhelming. The need to keep track of multiple repayment schedules, as well as the mounting interest that can build up across different streams of debt, can quickly spiral out of control if you’re not careful.

If you’re starting to feel like you may be paying too much interest, or you want to put all of your debts into one easily managed place, then debt consolidation could be the way to go.

Debt consolidation loans are there when you need a bit of extra help to manage your finances and day to day cost of living. It's about taking credit card debts, personal loans and car loans and then putting them all in one place to make managing repayments a bit easier.

Before you get started, there are a few things you'll need to do to make the process go smoothly. These should help to get your application completed as quickly as possible.

  • Check your credit history

    If you've had a credit card for a number of years or have had other debts like a personal or car loan then you'll have a credit history. If you've stayed up to date with repayments, then your credit history is probably fine, but it’s important to ensure your history is accurate and uncover any potential issues before applying for a loan.

  • Make a list of what you owe & your expenses

    Having a complete list of your debts can really speed up your application. It will give you an idea of how much you would like to borrow. Remember to list things such as credit cards and other personal loans.

    Highlighting the things that you spend money on can go a long way to working out your loan repayment schedule. Consider things like rent, bills, groceries, gym membership, insurance premiums, car expenses, and anything else that gives a really good indication of what your cost of living is.

  • Your employment details

    Payslips are perfect for detailing your employment history and how much you get paid. If you're self-employed or work freelance, then you can get the same information from your most recent tax return.

    A debt consolidation loan is all about making things easier to manage, taking a number of debts and streamlining them into one loan. Click here to learn what else you should consider before taking out a debt consolidation loan.