Debt Consolidation – Do I need to consolidate.
You often see advertisements and hear people talking about debt consolidation. What does debt consolidation actually mean? Often debt consolidation is used as a means of combining a variety of often expensive debts into a smaller number of credit facilities, usually a mortgage, often reducing the overall monthly repayments.
Is debt consolidation good for me?
Great question! Like most aspects in life, what is good for you is not necessarily best for another. Debt consolidation should only be considered as part of your overall finance strategy, not just a fix all solution in a time of crisis. Debt consolidation when used effectively should provide monthly repayment relief and place you in a better position to repay all your debts.
Some of the advantages to be considered during debt consolidation include:
- Reduced monthly repayments
- Improved financial control
- Better understanding of your finances
- Affordable lifestyle
- Possible tax advantages
When considering debt consolidation as part of your finance strategy, take the time to ensure you understand all the costs associated with consolidating your debt arrangements. This is particularly true when making an early repayment of existing loans or lease arrangements. Your broker will help you work through the detail. Often debt consolidation requires arefinance of some existing debts, however this is not always the case and should be carefully considered with your broker.
When combined with a well-planned repayment strategy like the Mortgage Partners Australia Lifestyle Simulator, debt consolidation can provide you with a great kick-start to achieving your financial goals.
Your broker will help you work through your finances to determine the best possible solution to provide you with an effective strategy for reducing debt and achieving your finance goals.
Refer to the Products and Services page for an overview of how you can use our extensive product range to help you.
Talk to us today to find out how effective debt consolidation can be for your success.
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