How do I consolidate my debt?
A number of options may be available to help you secure big savings through debt consolidation.
The interest rate on a home loan is likely to be a lot lower than the rate you’ll pay on other types of debt, so using your mortgage for debt consolidation could mean a big reduction in your overall monthly repayments.
However it can also turn a short term debt like a personal loan into a much longer term debt (your home loan). Unless you aim to make extra repayments where possible, you could end up paying more interest over the life of the loan.
Compare Home Loans using a Mortgage Broker.
A personal loan can be really useful for consolidating high interest debts like credit card balances. Along with the potential to lower the interest rate you’re paying, the fixed monthly repayments of a personal loan make repayments easier to budget for. The set term also gives you a clear date for the debt to be paid off.
Consolidate your debt with an Aussie Personal Loan.
Credit Card Balance Transfers
A good balance transfer deal can make it easier to pay off a credit card balance if the interest rate you’ll pay for the balance transfer period is lower than what you’re currently paying.
Look for a card that matches your ability to pay off the balance transferred while the rate is still low. And always consider the ‘revert’ rate that will apply to any balance remaining once the low rate period expires, as well as the rate charged for new purchases.
Your Aussie Broker can help you decide which method of debt consolidation would be best suited to your needs.
Continue to compare Debt Consolidation methods.