If you have credit card debts, you could potentially save thousands by consolidating it into a personal loan with a repayment plan.
Peer-to-peer lending allows you to borrow without talking to the bank. You’re essentially borrowing from other kiwis but the complexity of that is hidden and it’s a simple online application process.
By borrowing through P2P you’re helping us challenge the banks and leaving more money in kiwis’ back pockets. In a world of low interest rates, credit card interest rates are ridiculously high.
Instead of paying interest to the bank, with a P2P loan you are allowing other kiwis to earn a healthy return on their investment, at the same time as benefiting from lower borrowing costs yourself.
P2P works well for debt-consolidation. Combining all debts into one loan with one repayment is simple and it saves you money. It also means you pay it off rather than constantly compounding debt.
With Squirrel Money, our rates start at 8.95% p.a. and that might sound high but it’s not if you uncover the real costs of borrowing.
Consumers typically don’t pay off their credit cards each month. With a $15,000 balance and an average rate of 21%, it costs $3,000 a year in interest ($250 per month in interest alone.) But most people don’t see that because it is a revolving debt that goes up and down.
By consolidating $15,000 of credit card debt into a loan (with the added benefit of scheduled repayments) you would save up to $5,600 in interest.
Having your financial commitments visible encourages more discipline into your spending habits.
So, if you’ve got all your nuts tied up in personal loans, credit cards and store debt, and they’re feeling a little…squeezed (pun intended) then seriously do a debt-consolidation loan with Squirrel Money. One easy to handle package with repayment made fortnightly or monthly, timed with your salary and of course, lower interest rates.