Best rates for consolidating debt

10-May-2020 18:25

Different amounts and terms will result in different comparison rates.

Full comparison rate schedules are available from lenders.

Here's the difference between the two: Fixed interest rate: With your rate locked in for the life of the loan you will be able to make a clear budget, as you will know what your ongoing repayments will be.

But when you start your debt consolidation comparison, try to avoid loans that have high break cost fees if you want to pay out the loan early.

In this scenario, your monthly repayments would be 9 and over 3 years you would pay ,373 in interest.

So if you find yourself with extra money in your pocket down the track you'll want to make sure the debt consolidation loan you sign up with gives you the ability to pump it straight into paying off your loan.

Workout what type of debt consolidation loan you'll need There are plenty of choices when choosing a debt consolidation loan but the wrong choice could end up costing you big time.

So make sure you take the time to consider your different options when it comes to finding the right loan for you.

But you'll generally have to pay a higher interest rate and fees, compared to a secured loan.

You'll also have the option of choosing between a fixed and variable interest rate.

While one low rate loan could definitely help you kick your debt to the curb, it's important to know how to use the product to your advantage, whilst avoiding the traps that could see your debt stick around for longer than you'd like.