Debt Consolidation

Streamline your finances by combining all your loan and credit repayments into one simple monthly repayment

What is Debt Consolidation

Debt consolidation has helped a lot of people manage their debts without having to go into any type of formal debt management plan.  Debt consolidation consists of bringing all of your existing borrowing together into one monthly repayment.  It usually means getting a loan equal to all your total debt (and ideally at a lower interest rate) and using these funds to clear and repay all existing debts.  Going forward you will then only be managing one monthly repayment giving you more control over your budget.

You should always be better off by taking out a debt consolidation loan.  Whether it is having more disposable income each month or paying less in interest over the period of the loan.  To reduce your monthly repayments in the short term you could spread your loan out over a longer period of time giving you some breathing space, but this may cost more in interest in the long term.  Or you could find a loan at a lower rate than you are currently paying in order to save money in the longer term.

Metro Moneywise Credit Union has a range of affordable loans, including our Credit Builder Loan that helps you get your finances back on track, so have a look and see if you could save money by consolidating your debts with us.

How debt consolidation loans work

A debt consolidation loan lets you switch all your existing borrowing on to one loan, so you need only make one monthly repayment, and a loan with Metro Moneywise means this payment comes directly from your salary giving you even less to worry about.   A debt consolidation loan can be used to cover a range of existing credit including:

Credit Cards – Many credit cards charge high APR rates, which can make them an expensive option for long term borrowing.

Personal Loans – These could be for a car loan, or an unsecured loan.

Overdraft – Some overdraft rates can be as high as 40% APR.

Store Cards – Again store card rates can be very high, and encourage you to keep spending!