Financial hardship is something that everyone will likely experience in their lifetime. During times of career transition, moving home or business pressures, it can sometimes be difficult to keep your head above water.

Luckily, there are a number of different steps you can take to help deal with the stress and manage your finances with more ease and effectiveness.

One such option is debt consolidation. The basic principle behind this concept is to combine all of your monthly repayment obligations, including your home loan and any outstanding credit payments, into one payment.

The benefits of consolidating your debts together are vast. First of all, removing the confusion of making multiple payments every month can go a long way to helping clear your mind and reduce the stress involved with making various payments.

Furthermore, it can be possible to secure a lower, more competitive interest rate for your consolidated debt repayment, helping you to save money on interest and get you back into a healthy financial state faster.

Getting in contact with your finance provider will allow you to discuss the various options available to you. For example, one of the various facilities that can be adopted into your home loan is the ability to make lump sum payments.

If you come into a large sum of money, you can put this towards taking out a large chunk of your remaining debt, which helps to reduce your overall loan and decrease the amount of interest calculated on the sum.

However, it is important to remember that debt consolidation isn't a simple, quick fix. Avoid falling back into bad financial patterns once you get back to a stable, secure position.

You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.