Debt consolidation means bringing some or all of them into one loan, with one repayment. For many people that is the home loan.
What can be simpler
- One repayment instead of several.
- One due date to remember.
- A clearer view of what you owe.
What to look at before deciding
- The total cost, not only the monthly repayment. Spreading a debt over a longer term lowers the repayment, but the total interest paid over the life of the loan can be higher.
- The costs of making the change. Fees from your current lenders and from the new one.
- What the debt is secured against. Moving a car loan or credit card into a home loan means that debt is now tied to your home, and your home is at risk if repayments are missed.
It is not right for everyone
For some people, consolidation makes things simpler and the numbers work. For others, leaving their debts as they are is the better choice. That is why we look at the full picture and compare before and after.
If you would like a clear view of your own situation, Contact Us. No obligation.