How to smarten up on bad debt—you're not alone

The reality of modern living is that most of us will end up with a variety of debts - some bigger than others - to multiple creditors.

The reality of modern living is that most of us will end up with a variety of debts - some bigger than others - to multiple creditors.

But on top of the rent or mortgage and expenses of day to day living, it can be hard to keep aside the funds to make repayments, let alone make those payments on time. Managing your finances can start to feel pretty overwhelming.

Having a large amount of debt isn’t smart - but there is a smarter way to deal with it to help keep it under control. 

Debt consolidation won't make your debts disappear, but it's pretty much the next best thing.

Organising your debts into one payment makes it easier to budget and simplifies the process of managing your debt. You’ll only end up with a single bill to pay to one creditor - so there’s no need to keep track of multiple interest rates and payment dates.

It also means you’ll only have one lot of interest to pay - leaving you with more funds available in your bank account to help you get debt-free faster.

Peer to peer lending is a clever way to consolidate your debt into one loan. Overseas, where peer to peer lending has already been available to borrowers for some time, peer to peer lending organisations have found that typically over half of all loans provided are used for consolidating high-interest debts such as credit cards and hire purchase payments (source 1, source 2)

This is largely thanks to the easy, automated process for applying, and the lower rate interest rate compared to banks or other lending providers. While there are conditions based on your credit score, a consolidated debt through peer to peer lending can be a smarter way for many Kiwis to manage their finances, reduce their bad debt, and get back on track to achieving financial goals.

Find out about Harmoney's debt consolidation loans

Find out about Harmoney's debt consolidation loans

Debt consolidation loans