How to Consolidate Your Debt
If you’re a property owner, you may be eligible to use the equity in your home to reduce your monthly debt payments. For many people who have multiple debts to pay off, debt consolidation is a useful tool that limits stress and leads to lower total expenditure.
Equity in your home is defined as the amount on your property you’ve paid off so far. For instance, if your home is valued at $500,000 and you owe $300,0000 on your mortgage, your equity is $200,000.
Technically, because it’s been paid off, your equity is the amount of your home that’s already yours. You can leverage your equity to handle your debts with debt consolidation.
How it works
First, you use the equity in your home to obtain a low-interest loan. That loan can be leveraged to pay off your higher-interest debt.
As a result, you will now be managing one debt, not several. Although your mortgage repayments will increase each month to cover the new loan amount, the amount you are paying in total to reduce your debt will be lower.
Many people have difficulty keeping track of multiple repayments and interest rates. The beauty of debt consolidation is that you only have one monthly payment to keep track of, and one interest rate. It can make your finances far more manageable, as it does for many people.
Mortgage House’s debt consolidation
Mortgage House has been helping homeowners consolidate their debts for years. As one of Australia’s most awarded non-bank lenders, our priority is solving problems for our clients.
If you’re looking to consolidate your debts (or simply find out more about debt consolidation), we’re here to help. We can answer your questions and help you determine the best course of action – no complicated jargon, just answers!
At Mortgage House, we’re no strangers to the potential stress of loans, debt and finance. But don’t worry, we can help with that.
If you’re thinking of consolidating your debts, you can contact us for advice about the best options for you. Debt consolidation can work wonders for your financial situation, so it pays to speak to the experts about it.