Consolidating credit card debt with mortgage
The reality, however, is that the vast majority of people who use consolidation to pay off credit card debts go on to run up debt again - ending up with both the original 'consolidated debt' and a new credit card debt.
In simple terms, consolidating debts is not the easy option it seems as there are lots of potential pitfalls that need to be considered as well as the short term benefits.
If this sounds familiar, there are actions you can take to rein in your debt and pay it off sooner. Simply put, that’s one loan, one regular repayment, one interest rate and one set of loan fees.
Step 1: Gather information about all your debts To take control of your debt it is essential to know how much debt you have.
By combining multiple debts into one easy to manage personal loan you can potentially: Read more about our personal loans.
If you are finding it hard to keep up with your billing cycle, set up a direct debit.There is no single answer to this question, since a lot depends on your circumstances - in particular how much debt you have, from how many sources and what level of interest you pay on it.For instance, if you have a lot of credit card debt, consolidation may well be a good idea, since credit cards are often the most expensive way to borrow money.Step 3: Explore debt consolidation options Now that you know where you stand - how much debt you owe and how much you can put towards your repayments - it’s time to set up a plan to clear it.
At Westpac, we offer three ways to consolidate debt: A personal loan can be a good option to consolidate a range of debts.
That way, your credit card repayments will come first. Applying for a home loan top-up can be a quick and cost effective way to consolidate your debt.