What is debt consolidation?
Debt consolidation is a process where all (or many) of your debts are rolled together into a single loan. Debt from personal loans and credit cards can be incorporated into your mortgage at a much better interest rate as home loans tend to have lower interest rates than other forms of credit. Consolidation of your debt into your existing mortgage is most effective for larger amounts of money and should reduce the amount of your monthly repayment. It also has the advantage of only having to make one payment per month.
Debt consolidation done smartly can reduce your interest costs overall, and in this way save you money.
Always Seek Expert Independent Advice
We always recommend to secure independent advice from an experienced finance broker, not just your bank. The OZLoans Finance team brings sophisticated advice and advanced financial solutions, backed by 20+ years of experience in finance broking and management accounting. You can also consider it as a cross-check before committing to what may be a complicated, inflexible and unsuitable financial commitment. It is also complimentary.