Debt Consolidation

Consider consolidation when you have multiple high-interest debts, are struggling to manage multiple repayments, can access a lower overall interest rate, or want to free up cash flow. It's particularly useful when combining unsecured debts into a secured lower-rate loan.

Risks include extending your repayment period (paying more interest overall), using business or personal assets as security, early repayment penalties on existing loans, and the temptation to take on new debt once existing debts are cleared.

While technically possible, mixing business and personal debts can complicate tax deductions and legal protections. It's generally better to keep them separate. A mortgage broker can advise on the best structure for your situation.