If you are carrying debt with high-interest rates, you are likely overwhelmed by your monthly payments and wondering if there is a way for you to reduce your monthly payments and interest rates. Often, using a personal loan to consolidate your debt will allow you to do just that. Here are several reasons using a personal loan to pay off high interest rates on a number of debts is a smart idea:
Even if you reduce your interest rate by 2 or 3 percent, you can save a significant money on interest charges.
If you have credit card debt, car debt, and other debts, consolidating your debts through a personal loan can simplify the process of debt payoff. You won’t have to worry about keeping tracking of multiple payment dates and amounts, and you may therefore save money on late fees.
You can pay off your debt sooner if you only have one debt payment with a fixed interest rate. With only one debt payment, you’ll likely be more motivated to get rid off your debt faster. Rather than trying to figure out how to prioritise your payments, you can put all of your money towards your one loan and get it paid off quickly.
If you’re wondering whether using a personal loan for debt consolidation is right for you, we encourage you to contact Nectar today or apply here. Our automated system will assess your current financial situation and let you know whether we can help.
*Nectar’s lending criteria and responsible lending checks apply.
