Consolidate or not to Consolidate????

[soon2bmumof6]

Hi Andie
We have a home loan and considerable personal debt and even though we earn a decent amount in wages we don't seem to be getting anywhere. Within the next 12-24months we would like to be in a financial position to be able to keep the home we are in and build another. We are considering consolidating and putting as much as we can into the one loan instead of having it spread out over 3. Your opinion on our options would be greatly appreciated.
Lisa

[andie_pandie]

Hi Lisa, sorry I must have missed your post earlier.

If may be a good idea to look at possible consolidation depending on what the current interest rates you are paying on your personal debt. If you are getting nowhere and you have enough equity in the current property this may also be possible.

If you can manage to put a decent amount of what you have been paying onto the mortgage, this will clear the personal debt alot quicker due to lower home loan rates. Once the personal debt proportion is clear then the home loan will be reduced accordingly hopefully saving you years off your home loan and a large amount of interest saving as well.

If you would like to PM me I will be happy to help you further.

Regards Andrea