How it works and a guideon things to avoid.

Avoid DebtConsolidation.

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

T H E T R U T H A B O U T D E B T C O N S O L I DAT I O N

$10,000 Amount

Interest Rate

Monthly Payment

Total Monthly Payment

$20,000

Total Cost & Time

12% 10%

$517 $583

$1,100

$30,000

9%

$640

$640

Combined loans

$34,821in 41 months

$37,103in 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 m�e!