How to consolidate debt and save on your home loan

In Australia, a healthy level of debt is considered a good thing. Managed well it can help you achieve financial and personal goals, like home ownership or a new car. However, when your debt gets out of hand and you find yourself juggling multiple cards and loans, it can be exhausting.

If this sounds familiar, there are actions you can take to rein in your debt and pay it off sooner. Debt consolidation is one option. Depending on your property LVR you can consolidate your debts into your home loan and you might also pay LMI.

What is debt consolidation?

Debt consolidation could help you to combine your outstanding debts into one convenient home loan potentially at a lower rate than you currently pay. Simply put, that’s one loan, one regular repayment, one interest rate.

ROLL YOUR OTHER REPAYMENTS INTO YOUR HOME LOAN AND SAVE!

By consolidating your debts, you may be able to reduce the amount you pay each month in repayments. Home loan interest rates are generally lower than the interest rates charged on credit cards or personal loans, so by rolling these debts into your mortgage, the total amount that you have to repay each month will reduce.

How do I consolidate debt – how does it work?

Step 1:

• Gather information about all your debts.
• How much do you owe on each debt?
• The interest rate you are paying on each debt.
• What are the monthly fees on each debt?
• Any break costs on a fixed-rate home loan?

Now that you know where you stand and how much debt you owe, it’s time to contact Australian Property Home Loans to help you with the next steps.

What are your debt consolidation options?

• Combine your debt into an easy to manage debt consolidation home loan.
• Consolidate debt with a home loan top-up.

We will complete a client needs analysis to establish the right home loan product and interest rate for your individual needs.

By consolidating your finances under one home loan you can potentially:

• Take advantage of a lower home loan rate, when compared to other lending options like personal loans.
• Reduce the overall amount you pay each month across all your debts.
• Simplify your finances with only one monthly repayment..

Home loan top-up

Applying for a home loan top-up can be a quick and cost-effective way to consolidate your debt. By consolidating your finances under one home loan you can potentially:

• Take advantage of a lower home loan rate, when compared to other lending options like personal loans.
• Reduce the overall amount you pay each month across all your debts.
• Simplify your finances with only one monthly repayment.

Getting help

If you are finding your debt difficult to manage, the earlier you take action the better. Help is available! Contact me at adele@aphl.com.au for guidance.