Debt Consolidation Loans
Our debt consolidation loans allow you to bundle up a variety of your debts and pay them off all at once. By consolidating your debts into one loan you gain control with a single low interest rate and easy to manage repayment. The best part of our debt consolidation loans when compared to banks or other finance companies, is that we let you set the regular payment amount and never charge a fee for early repayment. This gives you complete control and allows you to get back on track, on your own terms.
Benefits of our low interest debt consolidation loans
- Our low interest loans can reduce your overall repayments and save you money. See our costs of borrowing to work out if it’s beneficial for you to consolidate with a Pronto loan.
- You’re in control and can set the repayment amount you know you’re comfortable with. It can be weekly, fortnightly or monthly. Just use our sliders when applying and select a figure that works for you.
- By bundling your debts into one easy to manage loan, you only have to focus on a single payment and not worry with the hassle of coordinating multiple payments at different times of the month.
- You can avoid late fees and expensive credit card interest charges by clearing these debts and focusing on a single low cost loan.
- Budgeting becomes much easier as you know what your repayment is and when it’s due.
- You will be able to see the exact date that you’ll be debt free, with our fixed term loans.
- It doesn’t take days to arrange, you can complete our quick and easy application form in less than four minutes. And the loan can be settled the same day with our 9 minute guarantee.
Risks of debt consolidation
- It’s only beneficial to bundle your debts into a single loan if the total cost will be less. It’s important to look at all interest and fees with a new loan and make sure you’re going to be better off.
- If you continue to take on new debt after getting the debt consolidation loan, you’re likely to end up back at square one and be no better off.
- It’s really important that you set the repayments at a figure you can afford. If you miss payments there’s always the risk of late fees and other penalties, so you want to be 100% confident that the repayment amount is going to be affordable throughout the term of the loan.
- You want to make sure that the new loan is used to clear all of your debts, and that you don’t leave anything outstanding, otherwise you risk being in the same situation further down the track.
How does debt consolidation work
With our debt consolidation loans we want to give you the freedom of a single payment. You can use the new loan advance to clear all of your current debts at once and with the repayment set at an amount you know you can afford, you’re able to get on with life. The other benefit of our fixed term loans is that you can see exactly when you’ll be debt free. Our debt consolidation loans offer low interest rates and the flexibility to get ahead.
Thousands of Kiwis are better off after consolidating their debts and keeping up with the regular repayments. Take Melanie in Christchurch for example. She had a couple of credit cards which she couldn’t get on top of and an old personal loan with a really high interest rate. So she bundled them together and got a Pronto debt consolidation loan. In the end her weekly repayments were much less than they were before and with a lower annual interest rate across the board, she ended up saving money. You can see just how easy it was for Melanie here.
What debt can you consolidate
These are the most common debts to be consolidated. Old personal loans with high annual interest rates can seem like they’re never going to be gone. But if they’re consolidated with a loan that has a lower annual interest rate and cheaper fees, then you can get on top of it and see the light at the end of the tunnel.
Short term loans that generally have extremely high annual interest rates. They’re not designed for long term borrowing. And when you don’t pay them off in time, they can spiral out of control. With our annual interest rates from 9.97% you can save a huge amount of interest by consolidating a payday loan.
Readily available and easy to use, this type of debt can build up over a period of time. Especially if you’re only making the minimum repayments. If you don’t make a real effort to clear the balance each month it can be really hard to get debt free. If you can get rid of your cards balance with a fixed term loan, your regular repayments will see a reduction in the principal with a finite timeframe for you to be debt free.
Store cards and hire purchases
Another debt that is easy to take on, but can become overwhelming. It often starts with an interest free period but then if you haven’t paid the whole thing off when this lapses, you’re left with a number of expensive charges. This makes it really difficult to get rid of. Again by using a debt consolidation loan you can see real progress. When the principal and interest payments are made regularly you have a definitive end date in sight.
Often overlooked when assessing your current debts, these can also be consolidated. You may be under a payment plan with a variety of companies, whether its Sky TV, your power company, rent arrears or a mechanics bill. If you’re paying something off bit by bit, you may benefit from a debt consolidation loan. Often these partial payments are due at different times of the month and if you don’t remember to make them you get charged expensive fees. By loading these into one debt consolidation loan, you can remove the stress and potentially save a decent chunk of money in the long term.
How to make the most of a debt consolidation loan
- Work out exactly how much you need to clear all of your current debts. Request settlement figures from all of your creditors and be sure not to miss anything.
- Write down and compare the costs of your current debts with a potential consolidation loan. It’s only logical to do it if you’re going to be saving money over the long term.
- Apply for a debt consolidation loan and make sure the repayment amount is going to be affordable. There’s no point in stretching yourself to make repayments, otherwise you’ll be likely to end up back where you started.
- Use the loan to pay off all of your debts. Don’t be silly and squirrel some of it away for unnecessary spending. The whole point of consolidating is to clear your expensive debts and replace them with a more affordable and low cost option.
- Stay on top of your repayments. Be sure that you’ve got money in your account before each repayment is due. And if you can afford it then it’s always good to pay a little bit extra to get ahead. But be sure to check that there are no early repayment fees. At Pronto we promise to never charge an early repayment fee. We want you to clear your loan as soon as possible so you’re debt free and we’ve got the money back to lend out again.
Get out of debt with regular principal and interest payments
Click on the badge below to see how we stack up against other debt consolidation loans, as reviewed by Top Reviews NZ.