Debt Consolidation NZ - Debt Restructure
Had enough of debt hanging over your head? We’ve all been there. But with the right debt management plan from the MyFuture team, you can knock those payments back down to size and spend more time living - and less time worrying about your creditors.
With more than 30 years’ of experience in financial advice, the MyFuture team knows how to help you take control of your debt. Discover how we can help you with a FREE Discovery Session on debt consolidation and management.
What Is Debt Consolidation?
Debt consolidation is all about controlling your debts before they start to control you, with one simple technique: take all of those credit cards, car loans, personal loans and home loans, and reduce them into a single, simple monthly loan.
In other words, consolidating debt means taking out a single new loan to wrap all of our existing debts together, paying them off all at once – hopefully at a lower interest rate, and with no additional charges or fees!
No more juggling multiple payments on multiple repayment schedules, no more flitting from one interest rate to another: just one, simple loan.
While debt consolidation can be great for some people, there are also risks. That’s where the team at MyFuture comes in.
What Are The Benefits Of Debt Consolidation?
If you’re having trouble keeping up with several high-interest loans, it might be worth rolling them into one, single debt consolidation loan.
These loans make budgeting much easier, because there’s only one loan to manage, which is often at a lower interest rate compared to a hire purchase or credit card debt. They’re also often spread over a longer period, so the weekly or monthly payments are smaller too.
And don’t be fooled into thinking that debt consolidation is just for people who are struggling with their repayments. Debt consolidation loans can save enormous amounts of money for anyone: imagine being able to pay off your high-rate car loan on your low-rate home loan instead.
Debt consolidation could help you:
What Are The Risks Of Debt Consolidation?
While debt consolidation can be an excellent choice for some, it also has pitfalls. As financial advisers, the MyFuture team can help you navigate them. These include:
- Having to pay early repayment fees that negate the benefit of any interest reduction
- Dealing with extra fees and charges that you may not have noticed in the new loan contract.
- Lower repayments over a longer term can actually add to the overall cost because of the effect of interest over time.
- Paying more in interest than you need to because you went to the first lender that accepted your application, rather than the best one for your needs.
Moreover, it isn’t as simple as just ‘getting a loan’ – debt consolidation only works if it’s combined with a financial plan that’s designed to help you pay down your debt.
All too often, people take out a debt consolidation loan, only to take out more debt as soon as their payments are more manageable. This traps them in a never-ending cycle of debt, delaying their ability to build long-lasting wealth and live the life they want and deserve.
Instead, people who truly want to take control of their debt (and their future) should have a plan in place to pay down their newly manageable loan. Otherwise, they might just end up back at square one.
The MyFuture team wants to make sure you’re always moving forward – no matter why you need debt consolidation in the first place.
Get Ahead With Quality Financial Advice
Our Qualified Financial Advisers can help you achieve your goals with a tailored financial plan and proven financial expertise.
What Are Debt Management Plans?
Sometimes, a debt consolidation loan isn’t enough. These situations are incredibly difficult, but the MyFuture team is here to help.
A debt management plan may be a solution to you and your creditors’ problems. Essentially, it’s an informal agreement between you and your creditors that sets up a manageable payment plan for you to repay your debts. Instead of having a legally binding debt obligation over your head, your financial adviser (that’s us!) negotiates on your behalf to set up payments that you can actually afford.
This is great for everyone involved. You’re able to get out from under unmanageable debt without needing to have a bankruptcy on your credit report, and your creditors get the repayments they rely on. It’s a win-win – something we always strive for as financial advisers.
But just like debt consolidation, the key is to have the right support and the right plan in place.
At MyFuture, we work with you to prepare a holistic debt management plan that works for you now as well as in the future. These plans can be tough to negotiate without the right experience, especially when creditors aren’t receptive to the idea, but with hundreds of happy clients, we know how to make a plan that really works.
Debt management plans can be a great solution for people who are:
- Struggling to keep up with the cost of current repayments on your loans, but have a stable income.
- Able to pay off the full value of the debts if only they could be stretched over a longer period of time.
- Tired of being harassed by creditors and want a solution that doesn’t involve taking on more debt (such as a debt consolidation loan).
Our Financial Services
At MyFuture, we’re committed to creating realistic, meaningful and life-changing debt consolidation and management solutions for people in all scenarios: whether you’re just trying to save more on your interest, or you’re struggling to meet your debt obligations. We’re here to help.
Get in touch with the team today for a FREE Discovery Session and let us show you how we can help you take control of your debt.
What is our 6-Step Financial Advice Process?
The 6-step financial advice process is the international benchmark for financial planning. This holistic approach is proven to increase the likelihood of you achieving your financial goals.
Discovery Session
This is our opportunity to get to know you better, understand your financial goals (short, medium and long-term), and what resources you have to achieve those goals.
Research & Recommendations
During these steps, we do the research, run the numbers, document and present our recommendations to you. This can be a comprehensive financial plan focused on long-term wealth creation and/or a statement of advice focused on your more immediate financial needs. We will need to verify the information you provided during the Discovery Session by requesting supporting documents such as loan and savings account balances, payslips, etc. This ensures we are using highly accurate information when developing our recommendations.
Implementation
This step is all about implementing the recommendations. We don’t just provide the recommendation; we take responsibility for helping you implement it. This could involve helping you to complete application forms, working with a broker to restructure your lending, or finding you suitable investments. We understand you’re busy, so our goal is to make your financial world as easy as possible by doing as much as we can in-house for you. However, ultimately, we never have access to your money and cannot sign anything on your behalf, so you need to be an active, willing, and ideally enthusiastic participant in this process.
Ongoing Service & Reviews
This is where the real fun begins—managing and tracking your long-term financial success. We have periodic reviews to ensure your strategy is still appropriate if your goals or circumstances have changed. We adjust when necessary and provide annual snapshots so you can see your progress over time. Most importantly, you have your very own trusted Personal Financial Adviser available anytime to help with the little or big stuff. Worried about making next month’s mortgage repayments? Call us. Your parents gave you an early inheritance? Call us. Broke up with your partner and split all your assets? Call us! We’re here for you every step of the way to ensure that whatever life throws at you, you stay on track with your long-term financial goals.
Frequently Asked Questions