If you are paying off multiple loans and credit cards to different providers, it can get out of control extremely fast. You end up paying more in interest and late payment fees, if you miss a payment and can damage your credit rating in the process. A debt consolidation loan may be just what you need to help you manage your debt easier. Doing this can also help to save you money and pay off your debts more quickly.

PFP Wealth in Shepparton have financial advisors and lending specialists that can work with you to consolidate your debt and get you back on the right path to financial stability.

You can use a debt consolidation calculator to give you an idea of how much your repayments may be and how much you can save.

There are many things to consider when looking to consolidate your debt, how it works and how it can help to get you back on track.

What are Debt Consolidation Loans?

A debt consolidation loan is where you combine multiple credit cards, personal loans and other debt into one personal loan. When you do this, the financial institution that you take out the loan with pays off your other debt so you are left with the one loan to manage and pay off.

Benefits to Debt Consolidation Loans Shepparton

When you take out a loan, credit card or store card you will have interest. Each of these credit type will probably have different interest rates and fees. If you only make minimum payments you will never get ahead and the interest that you pay will probably end up being much more than the original loan amount or credit limit. Keeping track of multiple payments can be difficult and often consolidating this down into one loan to repay is the cheaper and more simple solution.

Some other benefits of Debt Consolidation include:

Streamlining your Finances

Combining multiple outstanding debts into a single loan reduces the number of payments and interest rates you have to worry about. Consolidation can also improve your credit by reducing the chances of making a late payment or missing a payment entirely.

Pay off Debt Earlier

Having your debt consolidated into one loan means you accrue less interest than having multiple loans would. If you make extra payments or pay more than the minimum monthly payment each month you can pay off the debt earlier, saving you money in the long run.

May Reduce your Monthly Payment

When consolidating debt, your overall monthly payment is likely to decrease because future payments are spread out over a new and, possibly extended, loan term. Reducing your monthly payment may help you to begin with, but you really need to take advantage of the reduced payments and actually pay more than needed. This way you won’t end up paying more interest because the loan is over an extended period of time.

Less Stress

Consolidating your debt into a single, more manageable payment will help you to reduce your financial stress and clear the clutter ion debt that you have. Having the one debt repayment, means that you can take control of your finances and put yourself in a better financial position.