How does debt consolidation work?
For example's sake, let's say you had two credit cards, with debts owing of $2,000 and $3,000 each, and a personal loan debt of $8,500.
With each of these debts, you're paying a different interest rate with a different repayment amount, and a different due date. It can be tricky to stay on top of all these details.
Debt consolidation can help simplify your debt situation by combining all your debts into a single personal loan. This way, you have one set of repayments, one interest rate, and one recurring due date for repayments.
If you're able to secure an interest rate on your debt consolidation loan that is lower than the interest rates of your existing debts, this can also help you get ahead in reducing your overall debt.
You can use a personal loan repayments calculator to work out what your repayments could be.