A debt consolidation loan consolidates multiple debts into a single loan with one monthly repayment. Instead of managing multiple monthly payments to a number of different banks or finance providers, it allows you to deal with a single lender. Most consolidation loans should offer you a lower interest rate than you are currently paying on the debts you are consolidating. This reduced rate will save you interest. Debts which can be consolidated include credit cards debt, personal loans, store cards, pay days loans, tax debt and other high-interest bearing debt.
- Simplified Repayment: Managing a single loan repayment is more straightforward and makes it easier to avoid missed payments.
- Lower Interest Rate: A debt consolidation loan should offer a lower interest rate than you are currently paying on the debts you are consolidating. This will save you interest.
- Fixed Repayment Period: The debt consolidation loan will be repaid over a fixed term, providing a clear timeline for becoming debt-free.
- Improved Credit Score: A debt consolidation loan may have a positive effect on your credit score in the long run if you maintain a good repayment history
It may have a positive effect on your credit score in the long run if you maintain a good repayment history. It should also make it easier to avoid missed payments, which do harm your credit score. Some people find themselves in a worse position than they were in before because debt consolidation does not help change the behaviour that got them into debt trouble. Without discipline and a change in spending and saving habits, it is not going to provide a long term solution.
Our interest rates are offered based on your credit assessment and EBP Money's responsible lending criteria. Your interest rate will be personalised based on your overall credit profile and financial situation. Your interest rate will be fixed for the life of your loan. We offer interest rates at the lower end of our range to customers with an excellent credit history.
We charge a one-off risk or establishment fee. This is based on your loan amount and your credit rating. We also charge a monthly account service fee of $15. There are no fees for our tier-one borrowers with excellent credit scores. We will provide all your fees and charges in your loan contract.
Yes – you can make additional repayments, increase your repayments and pay out your loan early. However, an early repayment fee may apply. All fees will be disclosed in your loan contract.
If your circumstances change and you cannot repay your loan, please get in touch with us immediately. We are here to help.