Can I simplify my debts by consolidating?
We can help simplify your debts into one easy payment and maybe even save you money.
Do you have debt hanging over your head? You might be managing multiple payments or have an outstanding credit card debt. Either way, chances are you've lost sleep over it. You could consolidate your debt into your home loan to simplify things. Make one regular payment and you'll potentially save on rates and fees.
Smaller debts can be rolled into your home loan, for example personal loans, credit and store cards. After consolidating, you can restructure your repayments to get debt-free sooner - raise your payments slightly or make them more frequently.
Interest rates on small debts are usually set quite high. Rolling them into your loan should save you money in the long run. For example, if you bought a car with a personal loan you might be paying an interest rate as high as 12% p.a.. However, after consolidating, you could have a much lower interest rate, even as low as 5% p.a. in the current environment.
Once you consolidate your debt it will all become a 'secured debt' – you'll need to have the financial means to stay on top of your regular repayments or face penalties. To keep your spending in check, it's a good idea not to seek further credit cards or loans unless you're sure you can pay it back quickly. It's also a good idea to create a household budget so you can manage your future spending.