Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Consolidate Debt To Get Ahead With Finances

1 February 2005

Consolidate Debt To Get Ahead With Finances

The Reserve Bank of New Zealand statistics show that the average Kiwi household now spends $10 out of every $100 of after-tax income just paying interest. This includes interest on credit cards, home loans, and personal loans to name a few.

At ten cents in the dollar, interest has become an important consideration for New Zealanders to manage.

One way to manage your interest is to consolidate your debts into your home loan. Of course, it's no secret that interest rates on different types of credit vary significantly. For example, a credit card rate is very different from a home loan rate.

Debt consolidation combines all outstanding debts like car or personal loans, and credit cards into the cheapest possible source. And in most cases, it's the home loan.

Debt consolidation allows you to gather all expensive consumer debts and pay them off in the cheapest way possible - with mortgage-backed debt. It helps to reduce interest payments and to manage a number of debts at one time.

Take for example credit cards. Instead of paying 17 per cent or more on your credit card, you could transfer this debt into your home loan and pay less than half the interest.

Of course, it is important to be disciplined in your credit card spending and you should consider increasing your home loan repayments to cover the debts you have consolidated into your mortgage otherwise you may find yourself going backwards.

Debt consolidation offers the opportunity to help you save on interest and to better manage paying off your debts. One monthly payment is easier than making numerous, and one lower interest rate is certainly easier to manage than many.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>