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How To Use A Personal Loan To Pay Off Debts Faster

Updated: 7 hours ago

At Salt & Lime, we understand how stressful it can be for customers who have multiple debts tied to their accounts each month. Expenses can pile up quickly — across credit cards, medical bills, car repairs, emergencies and more. Getting on top of your finances can seem like an impossible task — but that’s where we come in.

In this helpful guide, we will talk you through how to use a personal loan to pay off debt faster, increase your credit score, and be on the path to financial freedom sooner rather than later.

What is a personal loan?

A personal loan is a form of instalment credit to repay in regular increments over a set period. They are a far more affordable alternative to credit cards since they offer lower interest rates.

A popular type of personal loan is a debt consolidation loan, taking multiple debts and “rolling” them into one manageable repayment. That way, you can close your existing loans and start fresh with one payment schedule. A consolidation loan for personal use will help you organise your finances better.

While it might seem like another thing to pay off, consolidating your loans into one empowers you to manage and pay off your debts.

Understanding how personal loans can pay off debt

By applying for a personal loan, you’re essentially applying for a lump sum of money to deposit into your bank account and use as needed. Personal loans are often loaned to buy a specific item, such as a car, boat, or furniture.

A debt consolidation loan, however, means the lender makes a direct payment to the lenders who hold your debts. That way, once you pay off your previous debts, you can pay off your new personal loan at a fixed monthly rate and lower interest rate. A lower interest rate means you’ll spend less money on payments for the loan and pay it off faster.

Consolidating your debt into a singular payment is far more manageable. It will ease the stress that comes with multiple incurred debts, which make it easy to feel overwhelmed and out of control. It’s a much more straightforward approach, rather than having to make multiple payments.

Now that you better understand how to use a personal loan to pay off debt, let’s explore the benefits that Salt & Lime’s debt consolidation loans offer their clients.

The benefits of applying for a personal loan at Salt & Lime

If you’re unsure why you should choose a debt consolidation loan, our debt consolidation loans have many advantages. By consolidating your debts into one manageable loan repayment plan, you’ll have more control over your finances to work towards a debt-free future. Eliminate large interest rates and fluctuating payments, increase your credit score and better manage your financial responsibilities by consolidating your debts with Salt & Lime’s loans.

1. Improved credit score

Managing your repayments through a consolidated debt loan means you can actively improve and transform your credit score. By reducing the stress of managing multiple creditors and different debt packages, you can make your goal of being debt-free much more attainable. You can also earn interest rate discounts on our loans by reading our blog on helpful financial management strategies and completing your educational modules.

2. Better financial management

With options for same-day financing on our online loans, no-credit-check requirements and a dedication to helping you out of your stressful financial situation, Salt & Lime is the easiest choice to transform your finances. Not only will we set you up with a consolidated loan, but we will also provide guidance so you can stick to a monthly budget. By choosing Salt & Lime, you are choosing a lender with you every step of the way. Manage your repayments with a predictable schedule that will make financial freedom seem not so far away.

3. Learn more and pay less with Salt & Lime

Salt & Lime is the only Australian lender that educates customers on improving their financial well-being with education modules. Once approved for a loan with Salt & Lime, you’re eligible to earn interest rate discounts through our financial wellbeing modules! Throughout your loan, we’ll send you eight modules to complete every three months. With each module taking only five minutes to complete, you can learn about your loan details, credit score and financial management strategies while getting closer to being debt-free!

Your financial wellbeing is our priority.


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