• Spring clean your finances

    If you are considering cutting back, then why not consolidate your debt, as a way to cut down on excess debts and financial clutter.

  • If you are considering cutting back, then why not consolidate your debt, as a way to cut down on excess debts and financial clutter.  

    The interest on your home loan is likely to be much lower than the rate on your other types of debt, like credit cards, store cards or personal loans. So consolidating debt that's incurring a higher interest rate into your home loan, could be a smart financial strategy, as you could pay lower interest on your overall debts.

    However, it's very important that you don't let short-term debt, like a personal loan, turn into a much longer term debt, or you could end up paying more interest in the long run than you would have originally.

    To make this strategy work in your favour, you should aim to keep repaying the same amount you were repaying before you consolidated your debt. That way you'll pay off the debt you consolidated into your home loan faster, and therefore, pay less interest on the overall debt.

    Talk to your RAMS Home Loan Specialist today to see how this might work for you.

     

    Things you should know:

    The information here is of a general nature only and is not intended to constitute financial or tax advice. You should consult your professional adviser, accountant or taxation expert for advice specific to your personal circumstances.

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  • Disclaimer:

    While such material is published with permission, RAMS is not responsible for its accuracy or completeness.  This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.