Debt consolidation loans in Bankstown
Juggling cards, car loans and personal loans? We'll help Bankstown & South West Sydney households roll them into one simpler repayment.
Too many repayments? Let's make it one.
Credit cards, a car loan, a personal loan, a few buy now pay later accounts - it adds up quickly, and keeping track of it all is exhausting. Consolidating can simplify your finances and free up cash each month.
At Infinity Mortgage Brokers, we help households across Bankstown and South West Sydney see whether consolidation makes sense, and what it really costs.
How does debt consolidation work?
Debt consolidation replaces several debts with one loan and one repayment, ideally at a lower rate. Depending on your situation, that might mean:
- Refinancing your debts into your home loan
- Using a personal loan to clear higher-interest debts
- Closing the accounts you've paid out
- Setting a repayment plan to clear the debt sooner
- Freeing up cash flow for the things that matter
We'll look at everything you owe, compare your options, and show you the monthly saving and the long-term cost side by side.
Is consolidating always a good idea?
Not always. Rolling short-term debt into a 30 year home loan lowers your repayments, but it can cost more in interest over time unless you keep paying it down.
It works best with a plan - close the old accounts and put the savings back into the loan. We'll help you set that up, and we'll tell you if you're better off leaving things as they are.
How Infinity Mortgage Brokers can help
There's no judgement here. Plenty of South West Sydney households are in the same position, and there's usually a way forward. Here's what you get with us:
- A full picture of your debts and what they're costing you
- Options compared across 40+ lenders
- Clear numbers on the saving and the total cost
- Guidance if you've missed a payment or two
- A plan to get ahead, not just get by
One honest conversation can take a lot of weight off your shoulders.
Ready for some breathing room?
Let's chat! Schedule a free introductory call with us now.
How does a debt consolidation loan work?
A debt consolidation loan replaces several debts with one. Credit cards, personal loans, car loans and buy now pay later balances are paid out by a single new loan with one repayment, ideally at a lower rate.
Two ways to consolidate
You can use a personal loan or, if you own property, refinance the debts into your home loan.
Why the home loan route is popular
It usually gives the lowest rate and repayment, because the debt is spread over a much longer term.
The catch
That longer term can raise the total interest you pay unless you keep up extra repayments.
What consolidation does not do
It does not reduce what you owe. It changes the rate, the term and the number of repayments, and it only works if the old accounts are closed.
Seeing both sides
Infinity Mortgage Brokers shows Bankstown home owners the monthly saving and the lifetime cost side by side. Our guide to debt consolidation mortgages explains the trade off.
Should Bankstown home owners consolidate debts into their home loan?
Consolidating debts into your home loan can be a good idea if you are disciplined about it. Bankstown home owners who move card debt charged at around 20% onto a home loan rate cut their monthly commitments sharply.
The benefit
Lower repayments free up cash each month, and several due dates become one.
The risk
The risk is time. A debt you would have cleared in three years could now run for 25 or 30 unless you pay extra.
Making it work
Cancel the accounts being paid out, and put the monthly saving straight back into the loan as extra repayments.
What lenders check
You need enough equity to stay under 80% of your home's value, or LMI may apply. Lenders also look at your repayment history on the debts being cleared.
Running the numbers
Infinity Mortgage Brokers shows you the monthly gain and the lifetime cost before you decide. Our refinance service is where debt consolidation usually starts.
Will debt consolidation affect my credit score or borrowing power?
Debt consolidation can improve your borrowing power, and on time repayments on the new loan support your credit score over time. Paying out debts and closing the accounts reduces the commitments a lender counts against you.
How lenders count your debts
Lenders treat the full limit on every credit card and buy now pay later account as a commitment, even when the balance is zero. Closing those accounts can lift your borrowing power.
The caution with applications
Each application is recorded on your credit file, and a run of them in a short period signals stress. It is better to be assessed once and apply once.
If you plan to buy property
The order of events matters. Consolidating before a home loan application can help, but a new loan taken at the wrong time can hurt.
Mapping the sequence
Infinity Mortgage Brokers maps the sequence for South West Sydney borrowers. See our guide to increasing your borrowing capacity.
Can I get a debt consolidation loan if I have missed repayments?
Yes, in many cases you can get a debt consolidation loan after missed repayments. A few late payments do not close the door, and consolidating is sometimes what brings a budget back under control.
What lenders look at
Lenders look at how recent the missed payments are, whether there is a pattern, your present income and the equity in your home.
Banks and specialist lenders
Major banks are strict on arrears. Specialist lenders consider each case on its facts and charge a higher rate for doing so.
Moving back to a lower rate
After a period of repayments made on time, many borrowers can refinance to a mainstream lender.
Straight answers
Infinity Mortgage Brokers in Bankstown will tell you candidly which path is open before anything is lodged. If you are under pressure now, read our guides for people struggling with mortgage payments and on home loans with low credit scores.
