When to consolidate your debt with a loan
‘Adulting’ is just a fancy word for ‘paying bills’. If you’ve got a few loans to pay off, you’re not alone. The good news is that you can pull all your debt into a debt consolidation loan.
There are four benefits to consolidating your debt in a single loan:
- With just one repayment every month, it’s easier to manage your debt
- Having only one loan means paying only one monthly admin fee
- You will have the opportunity to get rid of revolving credit that has stuck with you for years
- You have the option to lengthen the time needed to repay your debt, lowering your monthly instalments
Note that even though lengthening your loan term can lower your monthly instalments, restructuring your debt this way will result in more interest and fees paid over the life of a loan.