Debt consolidation loans: Many Kiwis find this loan convenient as you can pay off all your different debts with just a single account. Instead of paying for them separately, managing your debts becomes easier and faster. Debt consolidation also has a low interest rate, allowing you to quickly pay off debts with higher interest faster. You can also use debt consolidation to pay for credit cards, which can improve your credit rating.
Secured personal loans: This type of loan involves the lender securing collateral to loan money to the borrower. This functions as the guarantee; if the borrower doesn’t meet the agreements, the lender can take the collateral. Because of this guarantee, secured personal loans have lower interest rates.
Payday loans: When you need money fast, payday loans are handy as you can borrow money easily and pay it back on your next payday. Payday loans are short-term unsecured loans that you can borrow in a quick lump sum. You can pay for the amount until payday. The only catch is, this comes with a high interest rate and high fees.
Unsecured personal loans: There’s no collateral involved with an unsecured loan, but the interest rate is higher and the requirements are stricter. Your credit score determines the amount that you are eligible to borrow.