Well, Christmas and the silly season is over for another year. To help you get your Christmas debts under control, you might want to consider consolidating your debts.

Here are the top benefits of consolidating your debt.

1. It makes your debts easier to manage

Debt consolidation involves rolling all your existing debts into one, making it easier to manage. Instead of having to keep track of multiple repayments to multiple parties – and on different due dates at that – debt consolidation means you’ll only have to make one convenient repayment each month, cutting back time and paperwork. With only one repayment to remember, you can create a budget and stick to it more easily.

2. You decide how you want to consolidate your debt

There are generally two ways to consolidate debt. You may consolidate your debts by either taking out a personal loan or by refinancing your home loan. This is where you essentially refinance your mortgage, so you can get some cash to pay off your debts. As your mortgage broker, I can access both home and personal loans with competitive rates. With two options, you can compare them and decide which will work best for you.

3. It may help reduce interest and fees

Different types of debts have different interest rates. Credit cards, as a form of unsecured debt, usually have high-interest rates. Home loans and personal loans, on the other hand, usually have lower interest rates. Choosing between the two to consolidate your debts means less of your money will go to paying interest and fees.

4. Repayment is flexible

Debt consolidation means your monthly repayments will be spread out over a long period of time, offering more flexibility. This will make it easier to repay your debts and creating your personal budget will be a breeze. If you choose to refinance your home loan, you may even be able to make extra payments so that you can pay off your debts sooner.

If you’ve blown the budget this Christmas, please get in touch with us to see if your home loan or a personal loan could help you.