It may be cheaper for you to consolidate all you debts with your home loan, enabling you to pay off your debts quicker as well as reducing your overall financial commitments. A careful analysis of your finances can determine whether refinancing is recommended in your case.
There are many reasons why you should switch or consolidate debt into one easy-to-manage home loan. These include:
- Simplicity of one easy to manage repayment at a home loan rate
- Reduce monthly repayments and lower the overall interest that you are paying
- Close other loan facilities such as credit cards, store cards or personal loans which may be at high interest rates
See example below to view the benefits of Debt Consolidation:
You can also choose to separate the short term debt portion of your consolidated loan and set it at a shorter loan term. This will ensure that the short term debt portion of the loan is paid prior to your original home loan. This will allow that you pay less interest over the term of the loan.