6 steps to getting a better deal on your loan
If you're currently paying off a personal loan, you may be able to save on your repayments by consolidating your loan.
While debt consolidation loans are typically used by those with multiple loans or debts, they're also suitable for people with only one personal loan but looking to get a better deal.
So if you're interested in potentially getting a better rate on your loan and paying less in repayments, use this step-by-step guide to getting a debt consolidation loan.
Getting a debt consolidation loan
- Check how much you still need to pay off on your current loan and the size of your remaining repayments.
- Compare other personal loans to find one that offers a lower rate on the amount you need to pay off on your current loan.
- Calculate how much you'd pay overall compared to your current loan. Make sure to include any exit fees on your current loan, as well as any additional fees on the new loan.
- If the new loan would be cheaper overall, it might be worth applying for the new loan.
- Once approved, use the funds from the new loan to pay off the remaining balance on your first loan.
- Continue to make repayments on your new loan.
Why get a debt consolidation loan?
- You can get a better interest rate.
- You can lower the overall cost of your loan.
- You can lower the size of your repayments.
