Credit card debt consolidating mortgage
Paying off more than one debt at a time is not uncommon.
But if you’re struggling to balance your debt repayments, debt consolidation may well be worth considering.
The insider alleges that banks are pushing their staff to encourage customers to take on more debt despite them not being able to pay the debt back.
The banks are hoping customers spend up to their credit limit and then roll those debts back into their home loans.
In simple terms, consolidating debts is not the easy option it seems as there are lots of potential pitfalls that need to be considered as well as the short term benefits.
It is useful as a last resort if you are really struggling to meet a variety of monthly payments - however, once you have taken this step, you must be very disciplined about falling into debt again. However, there are lot of considerations to weigh up before you take this step - some of which will help you decide if it is a good idea, and some of which will determine if it is even possible.
The FSU said banking staff who did not meet sales targets could be fired.
In an exclusive Herald Sun interview, the Victorian bank insider revealed tricks staff use to get mortgage holders locked in a cycle of debt.
When it comes to consolidating your credit card debt into your home loan asking one of the big four banks will likely get a yes, a banking insider claims.The scheme leaves many borrowers with debts bigger than the value of their house.A 2011 Finance Sector Union (FSU) survey that found 51% of bank staff had seen customers being steered towards a product they did not need.Consolidating credit cards and loan debts into your mortgage can seem a no-brainer - after all, given the size of the debt, mortgage payments can seem low.
However, it is not necessarily the win-win strategy it seems - we explain.Debt consolidation is bringing all your existing debts together into one new debt, which can help you manage your repayments and give you a clearer picture of your financial future.