How it works and a guide
on things to avoid.
What is Debt Consolidation?
Things to consider first.
Debt consolidation is a debt restructuring process that involves combining all
your loans into one existing loan. It’s offered as a ‘simpler’ and ‘easier’ to
manage loan with one lower repayment and rate.
Banks want you to be in debt longer and when you consolidate you will be
starting again. Finally, you can also be charged establishment and exit fees.
simplify.co.nz 0800 001 561
Separate vs Consolidated
That’s $2,282 more and
another year of being in debt
THE TRUTH ABOUT DEBT CONSOLIDATION
Total Monthly Payment
Total Cost & Time
in 41 months
in 58 months
Length Extended terms means extended payments, you’ll be in debt longer
Rate Low interest rates are usually promotional and rates can increase
Repayments Lower repayments almost certainly means you’ll pay more
D’t pay me!