Sometimes if you have bad credit, it might be difficult to get a debt consolidation loan, so using home equity could be another possibility.
Check with a Credit Counsellor to make sure that you choose the right option.
Before you look at consolidating your credit card debts into your home loan and therefore extending the period in which you pay it off read our tips below on how to pay off your credit card.
When it comes to consolidating your credit card debt into your home loan asking one of the big four banks will likely get a yes, a banking insider claims.
Paying less interest and fewer fees makes the idea of consolidating your credit card debt into your home loan attractive but you have to make sure you structure the consolidation in a way that doesn't end up costing you more.
As most home loans are for a period of 30 years and credit card debts are for the length of time that it takes you to pay it off you may end up paying more as you will be paying off your smaller debt for a longer period time.
Well over 15 per cent of our online applications are about consolidating debt, which means we get thousands of requests.
Pulling equity out of your home at today's great interest rates can save you as much as 22% a month in interest charges!The scheme leaves many borrowers with debts bigger than the value of their house.A 2011 Finance Sector Union (FSU) survey that found 51% of bank staff had seen customers being steered towards a product they did not need.Did you know second mortgage rates can be as high as 24%?Today, you can refinance your existing mortgage to incorporate those debts and remove the debt load without having to take out a second mortgage.
The insider alleges that banks are pushing their staff to encourage customers to take on more debt despite them not being able to pay the debt back.