Getting a debt consolidation loan is a big financial decision. Don't jump headfirst without doing your research and organising your requirements. Here are four practical things you can do to prepare:
- Know your credit history. Lenders will ask about your credit history. You don't want to come in looking like you don't know what's going on with your finances, and more importantly, you don't want to lie about them! Lenders are taking a big risk by shelling out their money for you. The least you can do is be as transparent as possible, because if you get caught out you'll seriously damage your chances of approval.
- Organise all the information you have on your debts. Whether it's in a notebook or a Google Doc, it's always a good idea to have a file on hand that tells you everything there is to know about your existing debts. Note down the loan term, interest rate, comparison rate, early repayment policies, and other pertinent information for each of your loans. That way, you can refer to your document to calculate and compare what your debt consolidation loan lender has to offer.
- Calculate your living expenses. Can you handle the loan term, interest rate, and comparison rate that your lender is offering? There's only one way to know, and it's to compute your living expenses and see how much money you can set aside to pay off your loan.
- Compare debt consolidation loans. Check out our comparison table above to find the right deals to suit your lifestyle. Be thorough and take time to peruse each debt consolidation loan available online. Compare interest rate, comparison rate, loan term and monthly repayment methods so you can strike the best deal.
