Debt Consolidation

Debt Consolidation

Using your property as security may allow you to consolidate other debts to minimise the costs associated with debts including credit card and personal loans which generally attract much higher interest rates.  Sometimes life can throw curve balls which are costly and before you know it you may have debts where you can’t pay off the balance in full at the end of the month. The interest charges can sometimes seem insurmountable.

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Lender selection in completing a debt consolidation loan should be conducted very carefully as policy varies greatly between lenders as to the purpose of the cash out and the number of debts being consolidated.


Where debts being refinanced are factored into the servicing of the new loan the lender will often wish to control the cash out portion of the loan and pay the debt directly to the creditor.


When consolidating debts that are not factored into servicing, it is highly recommended that any credit cards and personal loans are paid out and then closed as well to allow a fresh start without possibly unhealthy debt being an ongoing factor for the borrower.

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