Your monthly payment
Find out what our great customers have to say about Lendela
Three fast steps to your debt consolidation loan:
1. Apply online in a few minutes
2. Receive offers from multiple lenders
3. Compare offers and select online
4. Sign the agreement and get the money
Our goal is to make your loan application process quicker, simpler and more transparent. As Hong Kong's only true personal loan comparison service, we support you all the way from application to disbursement. Click below to read more about Lendela and how we empower thousands of loan-seeking Hongkongers every month.
Debt consolidation is a simpler and effective way to pay off your multiple unsecured debts with a bigger loan favouring comparatively reduced interest rates and monthly payments.
Debt consolidation loans are often called balance transfer loans or personal loan balance transfer. Banks and money lenders or debt consolidating agencies lend you such type of loan.
Debt consolidation, or balance transfer, as it is typically called in Hong Kong can start as low as 3.0% APR, which is a lot lower than the interest rate you pay on a late credit card bill.
In the process of debt consolidation, you sign up for a bigger loan to pay-off all of your other unsecured loans (credit cards/personal loan). The creditor i.e. a bank or money lender that offer you the debt consolidation loan, help you pay-off all of your existing unsecured loans at once. Now you are left with only one liability, that’s debt consolidation loan. You are required to pay a fixed amount for a fixed period of time on a monthly basis to pay-off this loan
The shorter the payment span, the lower the interest rate and monthly amount of payment and vice versa.The duration to repay the debt consolidation loans in Hong Kong is usually up to 72 months. However, there is great flexibility in scheduling payments according to one’s resources and credit score. Depending upon the creditor/lender the eligibility to obtain the debt consolidation loan vary, so are the credit limit and payment conditions.
A loan that is not secured by any assets is referred to as an unsecured loan. Due to the fact, that in the case of failure in terms of payment, the loan cannot be paid-off against any asset or by the guarantor. Unsecured debts are short term liabilities, usually with shorter repayment periods.
Utility bills, credit cards, medical bills, etc. are a few examples of unsecured debts. You don’t have to secure any asset or bring a guarantor while indulging in such short term loans.
Unsecured debts possesses greater risk to the lenders, often called creditors. The risky nature of the unsecured debts makes it difficult to recover the outstanding amount for the creditors/lenders. In case the loan doesn’t get paid-off, the creditors or lenders have to sue the defaulter for the recovery of money they owe. In such a case, the court against the lawsuit may order the defaulter to pay the owed amount by using their assets to the creditors/lenders.
Plastic money - credit cards nowadays are used way too conveniently and broadly. We don’t even realise until we get the actual bill. Before our eyes the bills pile up with a greater outstanding amount to be paid. In such scenarios, you often opt for instalments / loans from your bank. Unfortunately, that’s one blunder because credit cards usually charge up to 35% to 40% APR for any late payment. Consequently, over a period of time, you pay a significantly greater amount.
In contrast, a debt consolidation loan is a cost-effective way to pay off your credit cards. Given a fact, a debt consolidation loan usually charges for a 3% to 7% interest rate depending upon the credit score and predetermined evaluation criteria for the loan consideration.
Let's say, you have HKD100,000 outstanding in one credit card plus HKD200,000 in another. You have a total of HKD300,000 to pay combined. One bank has a 35% interest rate and a second charges 30%. Total on HKD300,000 you have to pay HKD195,000 in terms of interest. Needless to say, you have bigger monthly instalments and twice the headache to deal with.
In such circumstances, debt consolidation loan helps you with lower interest rate and monthly payment. Suppose you opt for a debt consolidation loan and the bank or money lender offers you HKD300,000 on 3% APR to be paid off in a year. This way, you pay HKD309,000 in 12 months. Just HKD9,000 above your actual debt. Having 12 fixed instalments of HKD25,700 each.