16 Jun How to Pay Off All Debt At Once

Have you ever wanted to pay off all your debt at once? There are two ways you can accomplish this. One is paying all of your debt in cash. This is feasible if you have a lot of money saved up. However, most people don’t have the full amount of their debt or more saved, or they likely would have paid it.

A lot of people feel anxious about their debt, especially if they can’t pay their balances in full each month and are accruing interest on top of interest. It’s only natural that one would want an out of this. There is a way out of multiple debt repayments with high interest rates and fees. It’s called debt refinancing or consolidation. It’s how you can pay all your debt at once.

Debt refinancing, or a consolidation loan, is a personal loan used to pay off other debts at the same time. It offers a lower rate than other lines of credit because it’s a lower risk for the lender and you can pay it off over a longer period, so you get lower repayments. It’s a win-win for everyone: creditors get their money back and you pay your debt stress-free.

Save When You Pay Your Debt Off All at Once

Here are some reasons you could pay less on a consolidation loan.

Lower Interest

When you pay off your debt all at once, you can afford to pay less. That’s because personal loans like consolidation loans have lower interest rates, as opposed to revolving credit (credit cards), which have fixed payments each month.

In contrast, credit cards have varying monthly payments, which puts lenders at risk. Lenders are at risk because they never know how much you’ll borrow and when you’ll pay it back.

Instead of paying high interest rates on multiple credit and store cards, pay one fixed interest rate on one line of credit. That way, you’ll pay less while paying off multiple debts at once.

Lower Payments

Consolidation loans often offer lower monthly repayments. Because consolidation loans are large sums of money (up to R350 000 with Debt Refinance), you can often pay them back over longer periods than store or credit cards. This means you’ll get lower monthly payments and lower interest.

Repayments Made Easy

You’ll never have to worry about surprise debit orders or missing payments with debt consolidation. It could help mitigate some of your anxiety while freeing up room in your budget. The extra room could be used to pay off debt faster, further alleviating anxiety.

Debt refinancing could change your life and finances for the better. You’ll have more room in your budget, less anxiety, lower repayments, and a lower interest rate. Be kinder to yourself and your wallet, and pay your debts back with less pressure. It’s time to take control of your finances and life again.

Get in touch with Debt Refinance today for a free consultation. We’re happy to help!