If you don't have home equity, many credit cards have zero percent balance transfer rates — which can mean you get a new credit card, transfer all of your other cards' balances over to it, and pay no interest on the debt for the promotional period.
One convenient interest rate When you look at the high interest rates on personal loans and credit cards, you can already see why consolidating your debts through refinancing may be an attractive option.
Refinancing allows you to roll all your personal debts and liabilities into one loan account – subject to one interest rate, making your repayments a lot more manageable.
If you have equity in your home — meaning you owe less than it's worth — a home equity loan or line of credit can be a good way to consolidate your debt.
"Home equity loans and lines of credit generally have lower interest rates than personal, unsecured loans, and most credit cards," Lawler says.
The advice on our website is prepared without knowing your personal financial circumstances. Different terms, fees or other loan amounts might result in a different comparison rate. Break costs are an amount equal to the Bank's reasonable estimate of its loss due to breaking of the fixed rate period or early repayment of a fixed rate personal loan. The actual interest rate applicable to the loan will be based on the information you provide at the time of your application and our credit assessment.
Before you act on this or any advice, please consider if it's right for you.
Household debt is the consumer debt of the adults in the household plus the mortgage, if applicable.
In many countries, especially the United States and the United Kingdom, student loans can be a significant portion of debt but are usually regulated differently than other debt.
With credit card balances, a consumer can scrape along paying just the minimum, which often covers only interest and hardly tackles the principal.