It’s easy to collect credit cards and buy on hire purchase. But along the way, you could find you have collected a whole mountain of debt. If you are also struggling to make the minimum repayments on time, the additional fees can mean your level of borrowing quickly escalates.

A “debt consolidation loan” is one option to consider when you need to get your debt under control. However you need to go into it with your eyes open because these sort of loans have their disadvantages as well, and can even lead you down the path to facing debt collection agencies NZ wide.

A debt consolidation loan combines multiple debts into one. If you’ve built up a debt on a number of high-interest loans, combining them onto one lower rate can give you the breathing space you need to really attack the debt and get it down.