Short advice video by Aaron Whybrow (Diagnostics and Finance) about debt consolidation. Explains using a home loan (up to 30 years) to consolidate shorter loans (car loans ~5 years, personal loans, credit cards), warns that extending short-term debt into a 30-year mortgage can be harmful, and recommends planning, targeting credit-card reduction early, and seeking personalized help after holidays.
Hey there. Really cool thing about debt consolidation is that when you own a home, you get access to lending that can go over 30 years. The problem with your debt consolidation is that you have a home loan that can go over 30 years. Hey, it's Aaron. I'm from Diagnostics and Finance. Just wanted to give you a little bit of video on debt consolidation. So if we go to debt consolidate a car which is a loan which may be over five years and we put it into a 30 year loan or a holiday that we go and use the money and say it's on a personal loan for five years or thereabouts and now we go put it in the mortgage and it's over 30 years, how much is that car worth? Or do you really want to put that holiday that you've had on a loan in the first place and then let alone put it in your mortgage? So thinking about debt consolidation is that it is a very useful tool when it's used appropriately and it can be a very detrimental tool when it's not used appropriately. Especially, especially around extending lives of the credit card over a 30 year period or the car over a 30 year period. How much is the car worth at the end? So just a really cool tip trick with debt consolidation. It's something that can help with cash flow in the immediate term. Say you're trying to put some more cash into the business and you want to get rid of your personal debt so you can manage that better, clear out your mind space to be able to pay out pay one debt instead of multiple debts. So debt consolidation can be really, really cool. But you got to really think about it and make sure that you've got a plan in place. And that's where I come in. Going into the Christmas period, we might spend a little bit more money than normal. So debt consolidation could be one of those things that we talk about in January. So let's do it the right way. Let's get a plan in place. Let's make sure we knock that credit card down early or we are able to debt consolidated into the right spot. Each person's situation is different. Comment below if this is helpful and I will talk to you soon. Thanks. Bye now.
