Consolidating your debts into your home loan:

Additional debt (credit cards, personal loans, car loans etc) can sometimes impact your ability to pay your debts on time or leave you with very little money left to live on.

When could I consolidate debt?

If you have enough equity in your home, you could consider increasing your home loan to consolidate your additional debts. 

What does debt consolidation do?

If you consolidate your debts into your home loan, your repayments can become more manageable by having just one repayment.

How does debt consolidation work?

When you do debt consolidation, you actually spread your repayments out over a longer period of time, which reduces your repayments.  It does mean however, that you will eventually pay more interest on the debt than you would have had with a shorter term, but the payoff is that it is more manageable.

How can I pay less interest?

If you pay off your loan than the minimum repayment, you will in effect be paying your loan off quicker and therefore reducing interest.

 Debts to consolidate:

  • credit card balances
  • personal loans
  • car loans
  • store card balances
  • other debts:
    • business loans
    • Line of Credit
    • Family debts

Finance Allsorts can assist you with your debt consolidation.