Financial Literacy Should I consolidate my loans?
April 09, 2019
Every now and then, it’s a good idea to take a minute to review your finances and budget even though sometimes we’d rather just let them be and forget about them! Like old leftovers in the fridge, it’s better to brave up and get reviewing your money over with. That way, if you’re overspending or missing loan payments, you can deal with things before they go too far.
If you realize you’re struggling to make payments, you may want to consolidate your debt. Although we can’t advise if a consolidation loan is the best move for you without having a chat, we gathered some helpful information below.
What is a consolidation loan?
A consolidation loan takes all your debt and combines it into one payment with one interest rate. This can make your payments easier to manage.
What can I consolidate?
You can put credit cards, personal loans, car loans, student loans, lines of credit, and even your mortgage into a consolidation loan.
What would my interest rate be?
Your interest rate will depend on how much you’re consolidating, the current rates available, and how long you’re planning on paying off your loan for. With that said, in many cases, a consolidation loan will have a lower interest rate than the original (especially when it comes to credit card debt).
I have more questions, who can I talk to?
Our Help HQ team is able to answer account-specific questions over secure chat or phone. You can also reach out to your home branch or stop by for a visit (no appointment needed). Our staff are here to give you advice and help get you on track.
Budget, budget, budget
It’s not the most fun activity, but budgeting should be a top priority when it comes to your finances. Following a budget will help make sure you’re not overspending and that you have enough money for your monthly bills. It can also help make your financial reviews easier and, if you need to consolidate, a budget will help you stay on track and potentially avoid having to consolidate again in the future.
For more information about dealing with debt, visit the Credit Counselling Society website.
