Smart Way To Repay
Sun Herald
Sunday April 12, 1998
WE owe $15,000 on credit cards as the result of an overseas holiday and are paying off a $90,000 mortgage on our house. We are thinking of borrowing a further $25,000 on the house at 6.2 per cent, to clear the holiday debt and do some minor renovations. Is this a smart way to consolidate debt?
J M & C F, Ballina
I THINK it is a relatively smart way of handling things.
It would be best if you could pay off the credit card debt in a month or two, in which case you would not need to add it to your mortgage payments. Failing that, go ahead and consolidate your loans at the lowest possible interest rates.
I'll make the point I have made before: it is hard to believe how quickly we can spend borrowed money - and how incredibly long it takes to pay off a loan.
© 1998 Sun Herald
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