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“By rolling these loans into your home loan, debt consolidation can assist with improving your cash flow and making household budgeting easier,” said Di Iulio. “It is considerably easier to manage as it can reduce numerous creditor payments into one simple payment to one lender.”
“Also, the interest rate is cheaper. For example, a credit card interest rate is around 18 to 19 percent, compared to home loans with an interest rate of around 5.8 percent.”
Di Iulio says that debt consolidation provides the opportunity for renewing finances and investigating the best interest options. “It provides a good opportunity to review your existing home loan, and to investigate if there is a better product and rate available.”
In order to avoid the potential pitfalls of debt consolidation, Di Iulio warns that careful management and the maintaining of additional payments are crucial. “You need to be aware that you are extending a short term debt into a long term debt. This can, in the long run, cost more if rolled into a 25 year loan term. However, by careful management and making additional payments, this will assist in reducing your loan term and potentially saving thousands in interest costs.”
“The best way to navigate your way through all these options is to discuss it with a professional. They have the experience and tools available to run through the various scenarios.”
Media Contact:
Darryn Keneally 0410 344 761
Tracey Vale 0416 594 399
Assist Finance: 1800 300 101
www.assistfinance.com.au
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