What is debt consolidation?
Debt consolidation involves bundling all your debt with your home loan to make one repayment. Considering that home loan interest rates are much lower than other forms of personal unsecured credit, bundling them all into your home loan could reduce the amount of interest you pay.
You can also take the debt over the length of your home loan which would ultimately significantly reduce your monthly repayments.
What types of debts can I consolidate into my home loan?
Nearly all your personal debts, qualify to be consolidated into your home loan. They include:
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Credit Cards – credit cards are notorious for extremely high interest rates.
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Personal loans – personal loans generally attract higher interest rates.
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Car Loans – Car loans have higher interest rates with limited periods to repay the principal and interest on the loan.
What are the benefits of a debt consolidation home loan?
Although there is not a product known as a debt consolidation home loan, most home loan products cater for debt consolidation. Consolidating your debt with your home loan can potentially save you from financial stress. Benefits include:
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Paying a lower interest rate.
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Making only one monthly repayment.
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Extending your repayment term.
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Avoiding default and adverse credit listings.
What's the Yellow Line?
Consolidating your debts into your home loan is a very effective way of reducing your regular financial repayment commitment and saving a substantial amount of money over time.
It is best to seek professional financial advise to ensure you obtain the most appropriate home loan product for your needs.
Yellow loans has a vast range of lenders with a range of products to achieve the best results on obtaining the best home loan deal for you. You can contact us here and we can get your future looking bright.