What is Debt consolidation?
Debt consolidation is the process of folding (or “consolidating”) a number of different debts into a single loan or credit card, often with a lower overall interest rate.
It can be a useful option if you’re juggling multiple debts like a personal loan, a car loan and perhaps a few credit card balances. By consolidating your debts you may only have to make one monthly repayment instead of several and you may only be dealing with one lender and one set of loan statements.
The biggest advantage of debt consolidation is the potential for big savings on your monthly repayments and overall interest charges.
Many people choose to use their home loan for debt consolidation because it offers a very low interest rate but there are several other options including a personal loan or credit card balance transfer.
The Aussie website features a number of calculators that will show how much you could save through debt consolidation. Useful starting points are our Loan Repayment Calculator and Personal Loan Repayment Calculators.
Continue to the benefits of Debt Consolidation.