With the higher taxes and spending cuts in this year’s budget, many households are facing additional financial constraints. The impact of the budget may be significant for those looking to enter the housing market and buy their first property.
Fortunately, there are financial solutions that can help aspiring homeowners to avoid having to put off their homeownership dreams. One option is to consolidate multiple debts into a single debt.
A personal loan, for example, can consolidate multiple credit card debts and make these repayments more manageable as the borrower commits to a new home loan. Debt consolidation can reduce the overall required repayments and make it easier for borrowers to obtain approval for a home loan.
Debt consolidation can also be an option to consider for those who are saving up for their housing deposit. Consolidating multiple debts can reduce the overall interest and repayments, making it easier to accumulate a sizeable deposit more quickly.
Finally, debt consolidation simplifies the management of debt. The borrower will only need to be familiar with a single set of paperwork and make one repayment in each period.
