Debt Consolidation Overview - How can you use your home loan to consolidate your debt?

Home Loans are your cheapest source of finance due to it being secured on your property. Savvy debt management is all about reducing the amount of interest, and monthly charges you are paying on your outstanding debts. Therefore if you have outstanding short term, or unsecured debt, you should consider using your Mortgage to take advantage of the reduced interest rate, one monthly repayment and one monthly account fee.

Debt Consolidation can either be done using a 'one account' or simply by increasing the size of your existing bond to pay off the short-term debt. Speak to one of our Bond Busters consultants to discuss how we can do this and negotiate you a better rate on your home loan at the same time.

Other debts that can consolidated into your home loan are as follows:

• Credit card debt
• Store cards
• Unsecured short-term loans
• Car Loans

The interest rate on the above can range from 9% to 64%.

Bond Busters are the only independent mortgage brokers in South Africa. We assist the home owner in securing the best mortgage product available from all the lending institutions in South Africa.

Call us on 0861 287 837 to find out more, or complete our online enquiry form.

WARNING: By consolidating the above debts into one home loan package you are moving short-term debt into long-term debt. We strongly advise, that you continue to repay the same amount that you have been paying on all your current debt into your new increased home loan account. This will enable you to pay off your debt faster and far cheaper.

Follow the links on the right to navigate to the different sections of our Debt Consolidation Guide or click here to go to the next part of the guide.