Personal debt can creep up on us slowly, gathering in size until it becomes a black cloud hanging over our head. The average Australian has more than one credit card and many of us are paying interest on the balance. Add to that the various types of personal loans that are available and it isn’t too difficult to find ourselves juggling several loans at once. If that sounds familiar to you then debt consolidation might be a means to minimise the impact that this debt has on your cash flow. Debt consolidation means refinancing your debt onto the lowest interest rate possible and setting up a realistic repayment plan to get it paid off!
Provided you have both a mortgage and the available equity against your home, incorporating your personal debt onto your mortgage and increasing your repayments proportionally can save you a significant amount of interest. If you can tick all those boxes, then incorporating your debt can be the most cost effective and easy on your budget.
