Debt Consolidation Loans

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Take control of your finances with a debt consolidation loan.

If you’re paying off multiple loans and credit cards to different providers, a debt consolidation loan can help make managing your debt much easier and less stressful. Even the most organised individual can struggle with this.

It is possible that a debt consolidation home loan can help to change your life (providing you have equity available in your home), as instantly you will no longer need to respond to letters on a regular basis, or be being fearful of the phone ringing.

If you feel you may be getting behind with your debts but not to the extent that you’ve started to miss payments and damage your credit score, a debt consolidation home loan could work for you. It could also help you save money with lower interest costs and so pay off your debts more quickly.

Benefits of debt consolidation

For every loan, credit card or store credit you have, you’re probably paying different interest rates and fees. And if you’re only making the minimum repayments, the interest you pay could end up being much more than the original purchase or loan amount.

Consolidating your debts into one home loan means you have one interest rate and one simple regular repayment. Unlike credit cards, you can choose the term of your loan, so you can choose an end date that suits you. You could even set up an automatic transfer from your bank account, so you have even less to think about. Usually your home mortgage interest rate will be the cheapest interest rate available, even cheaper than personal loans and often with fewer fees.

However, when your debt gets out of hand and you find yourself juggling multiple cards and loans, it can be exhausting.

Be mindful that if you just increase your home loan via a loan increase that your mortgage repayments are likely to increase proportionately. It’s recommended that you opt to increase your repayments, or the mortgage will take longer to pay off and you will likely end up incurring more interest over the loan term. Talk to us so that we can work with you to best manage your cash flow to get ahead.

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