Andrew Thompson National Director Loan Market
COULD DEBT CONSOLIDATION BE WORTHWHILE ?
At the Reserve Bank of Australia ’ s ( RBA ) March board meeting , it opted to raise the cash rate by 0.25 percentage points . This takes the cash rate to 3.6 per cent , 3.5 percentage points higher than this time last year .
As interest rates have increased over the last 10 months , many homeowners have been looking for ways to save costs . One way they may have considered is debt consolidation . This can be a beneficial decision for a number of reasons but it may not be right for everyone . We explore who this might be better suited to .
Why consider debt consolidation ?
Debt consolidation is where you roll multiple debts , such as personal loans , car loans and credit cards , into one account . This can help simplify repayments as it will only be one rather than multiple . It could also potentially save you money if the consolidated debt is a lower interest rate than when the debts were separate .
There are a number of ways you could consider consolidating debt . These include combining into one personal loan or adding it to your home loan .
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