Using a Home Loan to Consolidate Personal Debt
Debt problems can often be solved simply by consolidation of existing debts. Existing debt from personal loans and credit cards can be incorporated into your home loan or mortgage at a much better interest rate.
Consolidating all your debts into a home loan can reduce both the interest you pay and your overall monthly payments.
There are a number of proven ways to go about debt consolidation, with perhaps the most effective being a redraw against existing home equity by taking out a second mortgage.
This approach reduces overall repayments to make the monthly budget more manageable, and can also substantially reduce the total amount of interest paid, as home loans normally have lower rates of interest than most other forms of credit.
Debt Consolidation - Save money by consolidating all your loans & debts into a home loan
With ever-increasing levels of household debt, using home loans for debt consolidation loans is becoming increasingly popular.
Should you find yourself in the position of needing to consolidate your debts, mortgagebroker direct can advise how a home loans can be used to consolidate personal debt, and what options are available. Email or call today for more information.
If you answer "yes" to any of the questions below, using a home loan for debt consolidation could be the right option for you:
- Is the total of all your monthly debt repayments squeezing your household budget?
- Is too much of your disposable income being chewed up by interest payments?
- Do you have a mountain of credit card debt with double digit interest rates
- Do you have reasonable equity in your home?
Second Mortgages for Debt Consolidation
To relieve the debt burden often associated with having too many credit cards, many home owners consolidate their debts onto a second mortgage.
A second mortgage is a loan taken after a first mortgage. A home equity line of credit and a fixed-rate home equity loan are both types of second mortgages, and either is good for debt consolidation because of the flexibility offered and the lower interest rates that can effectively reduce overall monthly repayments.
If you have a large amount of credit card debt outstanding and can't see a way to pay it off, contact mortgagebroker direct and ask how a second mortgage debt consolidation loan could help you get your household budget back in the black.
Email or call mortgagebroker direct today for more information about how debt consolidation can help you.
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