Money Saver
The Age
Wednesday October 4, 2000
Debt consolidation
With interest rates likely to rise further, it's not just your home loan rates that are going to be hit - your credit card rates and personal loan rates are sure to increase as well. As your home-loan rate is likely to be less than your other rates, try to consolidate your debt into your home loan. Assuming your lender will allow this, the savings can be considerable.
What the industry says
Bruce Weaver, senior manager of lending at Suncorp Metway, says: "Debt consolidation simplifies your credit position - you'll make one payment rather than six or seven, and it means you'll be repaying at the lower rate of the home loan. But a responsible lender should inform you that, while the monthly repayments may be less, the total real costs may eventually be higher."
© 2000 The Age
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