Feeling stretched across too many payments? It might be time for a financial reset.
If you’ve got multiple debts – like credit cards, store finance, BNPL (Buy Now, Pay Later) overdue balances, or old loans, keeping track of every single one can seem like trying to catch the ocean in a bucket. Not to mention the interest rates piling up behind the scenes.
That’s where debt consolidation can help. And if it’s been a while since you looked into it, here’s a quick debt consolidation refresher course!
What’s debt consolidation, again?
Debt consolidation is when you roll multiple debts into a single loan, resulting in having only one repayment, one rate, and one due date to keep track of.
It’s not new, but it’s possibly one of the most effective ways to tidy up and simplify your finances, especially if you find yourself juggling several smaller debts.
So, why do people consolidate debt?
To keep it as simple as a debt con, this is why people choose to consolidate their debts:
- Reduce the total interest paid
- Make repayments easier to manage
- Free up their weekly cash flow
- Help reduce stress and admin
- To stay on top of their payments and avoid late fees
Can debt consolidation work for me?
Before you jump into any conclusions, here’s a handy checklist you can use to check if you’re fit for a consolidation loan:
- You have: 3 or more debts with varying due dates
- You’re paying high interest (like credit cards or store cards)
- Your income has changed and you need more repayment flexibility
- You feel overwhelmed or you’re missing payments
Now all this considered, it’s very important to note that debt consolidation does not magically erase what you owe – however, it can give you a much clearer path forward.
Take into consideration the total cost of the new loan and make sure you’re not extending debt longer than needed.
And finally, as part of this debt consolidation refresher…
It’s worth considering a lender who tailors repayments to suit your budget. And what do you know — if you’re reading this blog, you’ve already found one! At Pioneer Finance, we offer debt consolidation loans designed around your needs.
We’re here to work with you, not against you. If you’d like to explore your options (with no obligation and no impact on your credit score), just click here to chat with our online assistant — or, if you prefer a personal touch, give us a call on 0800 000 724. Our friendly team is ready to help!