For many people who find themselves in debt, refinancing their home is a practical solution as it offers debt consolidation at a far cheaper rate of interest than a normal loan. Say, for example, a person has several credit card debts that they cannot repay, rather than keep paying the high rate of interest that credit card firms charge, re-mortgaging the home and using the extra to clear the credit card debts is a far cheaper way to handle the situation.
Bad Credit Cases
There are companies that offer bad credit debt consolidation loans in Australia and they can easily be found with an online search. You might be surprised to learn how easy it is to consolidate multiple loans by refinancing your home loan, and with a lower rate of interest on the new home loan that also covers your debt repayment, you are paying much less in the long run and your debts are a thing of the past.
Talk to the Experts
If you would like to know more about refinancing your home as a form of debt consolidation, you should make contact with a reputable online finance company like Loan Corp that specialises in such loans. They would be able to structure the new home loan in such a way that leaves you with an affordable, single monthly repayment and the extra amount would be used to repay all the outstanding debts. In some cases, you might actually be paying more in the long run, as the new home loan is spread over a much longer period than a personal loan.
Types of Loans to Consolidate
If you have any of the following loans, they can be consolidated into a new home loan,
- Credit card loans
- Personal loans
- Personal bank overdraft loans
- Car loans
The best way forward is to talk to a loan refinancing expert who can assess your particular situation and help you to find the best way to consolidate your existing loans with a new home loan.
Weigh Up the Costs
By talking to a financial expert, you can find out how much better (or worse) off you would be if you refinance your home loan. This type of loan consolidation isn’t suitable for everyone, so you need to sit down with a reputable loan provider – preferably one with experience in refinancing property as a form of loan consolidation – who can help you to decide what is the best approach.
Gain Access to your Equity
Refinancing your home loan allows you to utilise built up equity and therefore, avoid higher interest payments. It does make sense to do this, rather than borrowing more, and depending on how much equity you have, the monthly repayment for the new loan is likely to be much lower than if you took out a personal loan to pay off the multiple debts.
Thousands of Australian homeowners have successfully refinanced their home in order to consolidate their various loans and by talking to an expert, you can quickly discover whether or not this is a viable alternative.