Many Australians are now taking advantage of lower interest rates by consolidating or transferring their personal debts into a personal loan.
Research by Aussie Home Loans has found that 58 per cent of its customers are using personal loans to consolidate their debts built up in credit cards and other loans, with the average loan size being $20,000.
Aussie’s customers are also using personal loans for car purchases or travel, with the average age of the customer being 43 years.
Personal loans are regaining their popularity as consumers begin to understand that common alternatives – credit cards or adding to the mortgage – can be more expensive in the long term and take longer to pay off.
Aussie Executive Chairman John Symond said “The personal loan is coming back into fashion as it is a vehicle to consolidate multiple debts for ease of management and earlier repayment than many alternatives.
“It doesn’t make financial sense to be paying the minimum repayments on a handful of credit cards and not making any headway in paying off the principal, when personal loan interest rates are generally lower than credit card interest rates”, he added.
Aussie’s personal loans are now priced at 12.99 per cent (comparison rate at 13.94 per cent) for loan terms up to seven years.
Aussie has a user friendly tool for consumers to quickly analyse the costs associated with this type of finance, called the Personal Loan Calculator.
Visit the Aussie web site www.aussie.com.au/personal-loans or call the Aussie Contact Centre on 13 13 55 to apply for an Aussie Personal Loan.