CONSUMERS are taking advantage of lower interest rates and competitive home loan packages offered by lenders to consolidate their debts, says leading mortgage broker Loan Market.
Loan Market Sunshine Coast broker Lindy Kelly said the brokerage had noted a five per cent rise in transactions involving debt consolidation over the past year.
"We are finding that consumers are getting savvier in this lower interest rate environment and taking advantage of packages offered by lenders to tackle their overall debt situation," Ms Kelly said.
"Consolidating your debts into one manageable loan can be a smart way to not only get your finances in order, potentially at a cheaper rate, but to also reduce the amount of personal finance paperwork you deal with on a monthly basis.
"Many home loan packages will now allow you to pay in your salary direct and generally manipulate your debt to minimise the interest you pay. Before signing up for your mortgage, take a look at your entire financial position and take advantage of any opportunity to consolidate debt and minimise interest."
Ms Kelly said debt consolidation does take a degree of discipline and financial management.
"It can be easy to get into further debt if you don't stay on top of your financial situation," she said. "The biggest mistake can be acquiring more credit cards. Also, by consolidating your debts into one secured home loan, it can take longer to pay off the loan if you don't make extra repayments."
For more on property, pick up your copy of Domain free in Saturday's Sunshine Coast Daily.
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