Are you tired of juggling multiple loan repayments, credit card bills, and high-interest rates?
You’re not alone. For many Kiwis, managing debt across various sources can feel overwhelming—and expensive. However, there is a solution: consolidate your loans and credit cards into one single repayment.
Debt consolidation allows you to combine multiple debts into one manageable loan, often with lower interest rates. By doing so, you could save money on interest, reduce monthly repayments, and simplify your finances.
Below, we’ll explain how you benefit when you consolidate loans and credit cards, why it’s a cost-effective choice, and how Loan Direct can help you make it happen.
Why Consolidate Loans and Credit Cards?
Lower Interest Rates
One of the most significant benefits of consolidating your debts is the potential to reduce your borrowing costs. Credit cards, in particular, tend to have relatively high-interest rates. Most standard credit cards in New Zealand carry an interest rate of around 19.95%. By comparison, personal loans—such as those offered by Loan Direct—start from as low as 9.95% secured, and 11.95% unsecured.
This means that using a personal loan to pay off credit card debt could significantly decrease the interest you’re paying, helping you save money in the long term.
Simplified Payments
With multiple debts, it’s easy to lose track of payment due dates, leading to missed payments or additional fees. Don’t do this – it negatively impacts your credit score. Consolidating your debt into one loan streamlines your finances by combining everything into one regular repayment. This makes it easier to budget and ensures you stay on top of your financial obligations.
Reduced Overall Costs
When you consolidate debts, you might have the option to spread repayments over a longer term. This will reduce your monthly repayment amount, freeing up disposable income. Loan Direct’s experts can review your situation to help structure your loan in a way that balances affordability and cost-efficiency.
Opportunity to Improve Your Credit Score
Consistently making one manageable repayment can prevent defaults or arrears, which might occur when juggling multiple debts. Additionally, consolidating into a single loan shows lenders that you’re proactively addressing your debt, which can positively influence your credit score over time.
How Does Debt Consolidation Work?
At its core, debt consolidation involves taking out a new loan to pay off your existing debts. Once your debts—whether they’re credit cards, personal loans, or overdrafts—are paid off, you’re left with just a single loan to repay.
Here’s a simple step-by-step breakdown of the process with Loan Direct:
- Apply Online: Submit your details using Loan Direct’s 2-minute application form.
- Discuss Your Options: One of Loan Direct’s experienced loan advisors will review your application and present you with solutions tailored to your needs.
- Combine and Simplify: Once approved, your existing debts will be paid off, leaving you with just one repayment at a potentially lower interest rate.
- Enjoy Peace of Mind: You’ll have a clear repayment schedule and a manageable financial plan moving forward.
Even if you have a bad credit history, Loan Direct may still be able to help. Our team specialises in finding solutions for borrowers with varying financial circumstances.
An Example of Debt Consolidation in Action
A real story from one of our clients
April was drowning in $35,000 of credit card debt with interest rates nearing 30%, making repayments unmanageable. After being declined by multiple lenders, she turned to Loan Direct as her last hope. Loan Direct reviewed her finances and approved her for a $75,000 debt consolidation loan at a reduced interest rate of 17.95%, combining all her debts into one manageable payment.
This lowered her weekly repayments from $700 to $350, easing her financial burden and giving her a fresh start. Loan Direct specialises in helping people like April find affordable solutions to regain control of their finances.
Why Loan Direct is the Trusted Choice to Consolidate Loans and Credit Cards
If you’re considering consolidating your debt, the choice of lender matters just as much as the decision to consolidate.
Here’s why Loan Direct is the preferred choice for many Kiwis:
- Competitive Interest Rates: Loan Direct offers some of the most competitive rates in New Zealand, starting from 9.95% for secured loans. Unsecured loans start from 11.95%, providing affordable options for various borrowers.
- Fast Approval Process: Time matters when managing debt. Loan Direct offers approval times as quick as 1–2 hours* for most applications. Funds are often available on the same day, so you can act on your debts quickly.
- Tailored Loan Structures: Everyone’s financial situation is unique. That’s why Loan Direct works with you to structure repayments that fit your budget, spreading payments over a term that works for you without causing unnecessary strain.
- Expert Guidance: Loan Direct has been helping New Zealanders manage their finances since 2008. Our consultants don’t focus solely on lending—they aim to provide genuine solutions that reduce financial stress.
- Bad Credit? No Problem: Even if your credit score isn’t perfect, Loan Direct can still help. They specialise in finding workable options for borrowers with less-than-ideal credit histories, helping them regain control over their finances.
- Easy Online Process: With a simple online application and no paperwork required, Loan Direct streamlines the entire process for your convenience.
*Subject to responsible lending checks and criteria.
FAQ
Consolidating your loans and credit cards involves combining multiple debts into one, manageable payment. With Loan Direct, you can apply online or speak to an experienced consultant who will guide you through the process. They’ll assess your financial situation and create a plan with lower interest rates and simplified repayment terms.
Yes, Loan Direct can arrange to pay off all your existing loans.
Maybe – it depends on what you can afford. But many of our clients do borrow extra cash, pay off loans and reduce their repayments at the same time.
Debt consolidation itself doesn’t directly harm your credit score. In fact, by making consistent, on-time payments on your new consolidated loan, you may see your credit score improve over time. It’s important to maintain responsible financial habits to achieve the best results.
Loan consolidation offers several key benefits, including reduced interest rates, lower monthly payments, and simplified repayment schedules. It can help you save money, reduce stress, and pay off your debt faster.
The process with Loan Direct is fast and straightforward. Applications can be completed online in just 2 minutes. Once approved, their team works quickly to help you consolidate your debts and set up a manageable repayment plan. In most cases, we can present you with loan options with 1-2 hours*, with same day payout possible*.
Loan Direct specialises in assisting people who want to regain control of their finances. The most important thing is that you can repay the loan, so as long as you have enough regular income to cover the repayments, there’s a good chance of getting loan approval. Reach out today to see if you qualify!
Yes, you can consolidate your loans and credit cards even if you have bad credit. Loan Direct understands that financial challenges happen, and that’s why they offer solutions tailored to your situation. While having bad credit may affect the terms you’re offered, Loan Direct works to find the best consolidation plan for you. Consolidating your debts can help simplify payments, lower your monthly expenses, and potentially improve your credit over time with consistent, on-time payments.
*Subject to responsible lending checks and criteria.
