The new year. Honestly it’s a weird one. It’s a time to reflect on the ups and downs of the past 12 months, set resolutions for the next 12 and try and buy into the old cheesy sentiment, new year new you!
Although it can often feel more like new year, old you. And if you have personal loan debt hanging over your head from 2019, a more accurate sentiment might be new year, old debt.
This is where a debt consolidation loan comes in. With this type of loan you can roll all your debts into one, including credit card debts, store card debts and personal loan debts.
You’ll only have one repayment date to remember rather than five, so you’re less likely to incur late repayment fees and if you have credit card debts, you could benefit from the lower interest rate that usually comes with a debt consolidation loan.
Here are a few debt consolidation loans you might want to check out this January:
Symple Loans Personal Loan
Variable rates from 5.75% p.a. (6.89% comparison rate^)
Consolidate up to $50,000 worth of debt
Extra repayments allowed and no penalty for early repayments
With online lender Symple Loans’ debt consolidation loan you can consolidate up to $50,000 worth of debt and benefit from interest rates starting from 5.75% p.a. (6.89% comparison rate^). The loan does come with an application fee and a monthly service fee, but if you crunch the numbers and decide on a lower interest rate and the ease of having only one repayment date to remember cancels that out, it’s worth checking out.
Harmoney Unsecured Personal Loan
Fixed rates from 6.99% p.a. (7.69% comparison rate^)
Borrow up to $70,000
Extra repayments allowed and no penalties for early repayments
Harmoney’s unsecured debt consolidation loan is quick and easy to apply for online and you can roll together from as little as $2,000 to as much as $70,000 worth of debt. Plus, as this is an unsecured loan, you won’t have to put any of your assets up as collateral and you could benefit from an interest rate as low as 6.99% (7.69% comparison rate^). The loan also comes with the ability to make extra repayments and early repayments without incurring a penalty fee, meaning you might even be able to pay off your consolidated debt before the year is through!
Plenti Unsecured Personal Loan
Variable interest rates from 6.89% p.a. (8.89% comparison rate^)
No monthly service fee
Extra repayments allowed
If you’re struggling to keep up with your credit card and personal loan repayments, then you’ll be pleased to hear that you can use RateSetter’s unsecured personal loan to roll together up to $45,000 worth of debts. There are no monthly service fees with this loan and interest rates start from 6.89% p.a. (8.89% comparison rate^^). Plus you can make extra repayments on top of your standard repayments and there are no penalties for repaying early, so you might even be able to clear your consolidated debt sooner rather than later.
OurMoneyMarket Low Rate Personal Loan
Fixed rates start from 8.00% p.a. (8.21% comparison rate^)
With OurMoneyMarket’s Low Rate Personal Loan you can roll up to $50,000 worth of debts into one, so you’ll no longer have to remember to make multiple repayments throughout the month. On top of that you have the option to make extra repayments, so you could be done with the loan sooner than you think. And if do manage to repay it all early, you won’t be hit with an early repayment penalty fee!
If you have a pretty hefty amount of debts to pay off, say more than $20,000, then you might want to consider Latitude’s Low Rate Personal Loan. This loan is only available to homeowners or applicants who have a mortgage and comes with a fixed interest rate of 9.99% p.a. (11.22% comparison rate^). So you should know what to expect with every weekly, fortnightly or monthly repayment. Plus if you pay off your loan within the second half of your loan term then you won’t be hit with an early termination fee (a $300 fee applies, if you wish to repay in the first half of the loan term). So if you want to put all your debts in one place and benefit from a lower interest rate, this might be one to add to your list of potential debt consolidation loans.
^The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are for the amounts and terms below, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may inﬂuence the cost of the loan. ^Based on $10,000 over 3 years ^^Based on $30,000 over 5 years
How to be smart about your debt consolidation loan
• Double check you’re not signing up for any hefty hidden costs. Some loans come with an application fee and possibly a monthly service fee too. But when you’re trying to pay down debt, the trick is to make sure you don’t wind up with a monthly service fee you can’t afford to pay or an application fee that puts a huge dent in your bank account.
• Ditch your credit cards. Ditching your plastic is possibly the best thing you can do to start taking control of your debt. This means closing your old accounts so you won’t have to worry about paying your annual credit card fee anymore and you won’t be tempted to purchase anything on credit while you’re trying to banish your debt.
• Make sure you get all the extra features. If you want the option of paying off your loan sooner rather than later, it can be worth making sure you get extra features - as long as you’ll use them. These include the ability to make extra repayments, flexible payback dates and the option to make early repayments without incurring a penalty fee.
Now that you have all the tips and tools to start banishing your debt, why not make 2020 the year you take control of your finances. Plus you can find even more debt consolidation loans compared by Mozo at our debt consolidation loans comparison page.