Compare different methods of Debt Consolidation

Method of debt consolidation


Possible downsides

Home loan
  • Low interest rates available
  • Potential to make extra repayments
  • Redraw facility if funds needed in an emergency
  • Longer term could mean that you could pay more in overall interest if you stick with lender's minimum repayment amount
  • Requires sufficient home equity to secure your loan
  • State government charges may apply to financing/refinancing process
Personal loan
  • Set repayments are easy to budget for
  • Fixed term gives you a clear pay out date
  • Rate is higher than for a home loan
  • Possible upfront and ongoing loan charges
Credit card balance transfer
  • Very low rates for introductory period
  • Fixed term gives you a clear pay out date
  • Revert rate may be high
  • Requires discipline to pay off card in introductory period

Your Aussie Broker can help you decide which method of debt consolidation could be right for your needs.

Continue to Debt Consolidation tips.