Refinancing can cost more

Overburdened borrowers have five basic options to dealing with their debts. The first is to pay off the smallest debt first if you need to see results or the debt with the largest interest rate. Making a private agreement with creditors can reduce repayments if creditors agree. Consolidating and refinancing debts into a mortgage can end costing more in the long term as interest on short term debts is charged over the life of the mortgage. A part nine debt agreement can help people with income and assets to protect but remains on a consumer's credit file for seven years. Bankruptcy can assist people with no income and no asset.

Source: Sunday Herald Sun

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