Debt Consolidation Guide

When you have multiple debts such as hire purchases, credit cards and store cards it also means various interest rates and multiple payments which can come with high interest rates. Keep track of what you owe, by rolling all your debts into one easy to manage loan.

With debt consolidation, budgeting is made easier and you should begin to make noticeable progress with paying off the money you owe. When you consolidate your debt you are taking out one loan to pay off all your multiple outstanding debts, and will only have to make one regular repayment with one interest rate and term. This will help to ensure that your repayments are manageable which in turn will help you manage your budget more effectively.

Things to Consider:

  • If your aim is to shrink your debt, then resist the urge to take out new debts once your debt consolidation loan is in place. Make it your goal to pay off your debt consolidation loan by consistently making regular repayments.
  • There can be costs involved when trying to pay off all your existing debts as some lenders charge “early repayment fees”. Ensure that you have taken this into consideration when applying for a debt consolidation loan so you can include it in the amount you are borrowing if needed.
  • When you take out your debt consolidation loan make sure that your lender is upfront with you in regards to establishment fees and interest rates. You will feel confident knowing there will be no surprises in the long run and that your lender has your best interest in mind. At Westpac, we always want to be upfront with our customers, so you know exactly what you are paying and why.

Find out how much you could borrow with a Westpac Debt Consolidation Loan, and simplify your debts today.