Consolidating your debts | Mortgage Broker Bayside

Life moves quickly and you might have accumulated a few smaller debts. Consolidating your debts into one easy-to-manage loan with a low rate can be a great way to save money - and make your life easier!

What is debt consolidation?

Consolidating your debt is the process of rolling your smaller 'bad' debts into one larger loan. While it might sound like you're just moving your debt around, a larger loan can mean lower interest rates and better features!

When you have a larger loan, banks and lenders are more likely to give you some of the better offers they have available. It can also mean that your debt is moved to a quality lender, like your everyday bank, making it easier to manage and eliminating any confusion. 

Consolidating your debt into your home loan

If you have a home loan, you might consider consolidating your smaller debts into your home loan. That means increasing your home loan amount, allowing you to pay off your smaller debts and utilise the low interest rate you likely have on your home loan.

You will also benefit from things like your offset account and other great features which are only available with a home loan. However, it's important that you don't make the mistake of adding decades to the repayment of your smaller debts, just because they now sit in your home loan.

Use the lower interest rates to pay them off faster and strategise with our mortgage broker Bayside team to get your whole home loan paid off sooner.