Getting into debt is easy! Staying on top of it is a lot harder. If you have a few credit cards, perhaps a mortgage, a car loan and maybe a personal loan, keeping track of all the different interest rates, conditions and payments can be a headache. Consolidating all your expensive debts into a single low rate package (debt consolidation) could be the smart solution.
One loan + lower interest rate + smaller monthly payment = you could save money.
As home loans tend to have lower interest rates than other forms of credit, home equity is one of the most cost-effective methods of consolidating debts. If you have equity in your home, you may be eligible to redraw against your home loan to pay off other debts. Rolling your expensive debts into your home loan will reduce your interest rate overall, and in this way save you money; however, it is important to consider the loan term as you could end up paying more interest in the long run.
How it works
- get a secured loan from an institution like MyRate
- use the funds to pay off all current debts
- start making regular repayments into the one easy-to-manage loan
- because the loan is secured, you will pay a lower interest rate than existing car/personal loans or credit cards
Debt consolidation with MyRate
- Consolidate up to 4 unsecured loans and up to 5 credit cards
- receive one of the lowest rates in Australia
- reduce your monthly payments amounts
When refinancing or consolidating debt you can only go to a maximum of 90% LVR