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A debt consolidation loan is a type of personal loan which, as the name suggests, you can use for debt financing. Consolidate all of your other loans such as credit card debt or smaller personal loans into one. With a debt consolidation loan, you are essentially refinancing your old loans into one with better terms. It's one of the best options to clean out your debts and ease your repayments. There are a several ways a debt consolidation loan can help you. First, you only have to make one payment on the same date every month. This is far more convenient than making one payment on different loans. You then only have to calculate and keep track of one interest rate instead of several. The biggest benefit here is that the interest on a debt consolidation loan is usually much lower than, say, the interest rate on your credit card. You could cut down on interest payments which could help you manage your debt and have a brighter financial future.
On MoneyHero, you'll find debt consolidation loans offered by HK banks and lenders. You can compare the services from Citibank, Dah Sing Bank, China Construction Bank, DBS, Standard Chartered and more. Learn about their interest fees, monthly rate, repayment schedule and special offers such as cash coupons and cash rebates, all in an easy to understand format. Use the loan calculator on the MoneyHero personal loan page and specify how much you plan to borrow and how you want to make your payment. Your monthly repayment and total repayment will be computed so you can easily compare the loans from different providers. It's easy to compare the loans based on which ones offer the lowest monthly flat rate or the one that offers the lowest monthly repayment on your loan.
Review your debt consolidation loan options here and click on the 'Apply Now' button on the plan of your choice. This will take you to a personal loan application form which you will have to fill out. A bank representative will get in touch with you shortly to help you complete the application process and explain their services in detail. No need to waste time walking to the bank and waiting in line to apply for a personal loan if you apply online. Hong Kong lenders vary in the requirements that they will look for when you apply for debt financing. Typically, you would have to be a permanent resident of Hong Kong aged 18 or above to qualify for a loan. Providers may also require a proof of income from you so be ready with these documents if you plan to apply for a debt consolidation loan. Help yourself get out of debt and realize your financial management goals by getting a debt consolidation loan. Apply for a loan on MoneyHero and take control of your debts today!
Many people own more than one credit card; when over-consumption is common and they only pay off the minimum payment due amount, the interest amount can cost much more than the original credit card debt. Since the interest rates of personal loans are lower than those of credit cards, applying for a personal loan is a popular way to pay off credit card debt. A debt consolidation plan transfers all your outstanding credit card and loan balances to one loan account, while you can have fixed monthly repayment and repayment period to save interest expenses and have a clear repayment goal for better financial planning.
Generally, the application processes of a debt consolidation loan are simple; even though you don't have a bank account at a specific bank; if you are a Hong Kong permanent resident aged 18 or above and you could provide any income proof, you could get a debt consolidation loan. You should also check if other costs are involved in the loan, such as service charge and early repayment fee.
Banks and financial institutions offer debt consolidation loans mainly for people who have multiple outstanding credit card debts, which allow them to pay lower rates of interest and repay credit card debts sooner.
A debt consolidation loan means a bank or financial institution combines all your debts into one single loan, and you have to make one fixed monthly payment. The interest rate of a debt consolidation loan is generally much lower than that of the penalty interest rate for late repayment, which possibly cut your interest at half.
You should choose a debt consolidation loan based on your ability to repay. If your repayment capacity is low, you should choose a long-term loan to extend your repayment and reduce the burden.
There is no such thing as a free lunch; a debt consolidation loan usually charges a handling fee of every year. Furthermore, many loan plans claim to be 'interest-free', you should keep in mind that these are limited-time deals and you will be charged a higher rate of interest afterwards -- please be financially prepared to avoid penalties.
your credit score reflects your financial health, including your loan portfolio and repayment record, so a debt consolidation loan may be reflected on your credit score. Paying off credit card debts fast and cancelling extra credit cards may improve your credit score.
Disclaimer: MoneyHero makes every effort to keep information on our website accurate and up-to-date. This information may be different from what you see when you visit a financial institution or service provider’s site. APR and monthly payments shown in personal instalment loan comparison pages are estimated based on calculation of information you enter. All financial products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. If you find discrepancies in information, please contact the financial institution directly.