When you want to get ahead.

When a residential property is being used as security for a loan, it becomes a lot cheaper. People often have a lot of un-beneficial debt that has a high interest rate attached. For instance credit card debt often has a 55 day interest free period before a 20% interest rate kicks in. Now if you have $20,000 in credit card debt where you are only making the bare minimum repayment of 3% per month (figure is often between 2% to 5%), then you are repaying $600pm, then taking into account the compounding of interest, by the end of the year, you would have paid $??? in interest. Now if you have a $20,000 debt on your credit card and you have good credit, find a zero balance transfer 12-24 month interest free credit card to move it onto and be disciplined about paying it off. There is likely to be annual fees to take into account, but this is a good option.

Other debts you may want to take into consideration are personal loans and car leases (especially those with a balloon payment at the end). You can also get cash out for renovations, investment purposes, ??? Whilst you can borrow to pay the ATO or for holidays, I would recommend learning to budget to pay your taxes and if you want to go on a holiday, save for it.

If your debts are difficult to get rid of with your current income and you can use your property as security, it maybe well worth undergoing a debt consolidation. A home loan interest rate is far easier to deal with and you can choose the term you would prefer to pay it off.