With rising interest rates and ongoing inflation pressures, many households are starting to feel the strain—and with further rate increases expected, this pressure is only likely to grow. Recent data suggests around 26–30% of mortgage holders are already experiencing some level of stress, and additional rate rises will only make things tighter.
The good news is that many clients are in a stronger position than they think. Over the past few years, significant property price growth has created equity for a large number of homeowners. That equity can now be used strategically to improve cash flow and regain control.
One of the most effective ways we’re helping clients right now is through debt consolidation—bringing multiple debts such as credit cards, personal loans, and car finance into a single home loan. This can simplify finances and, in many cases, reduce overall monthly commitments.
For example, a client with:
- A home loan of $550,000
- A $10,000 credit card
- A $30,000 car loan (repayments approx. $600/month)
By consolidating these into one loan, repayments could be around $3,600 per month, helping to streamline cash flow and reduce financial pressure.
This isn’t just about reducing repayments—it’s about creating breathing room, improving structure, and ensuring you’re in a position to navigate what’s ahead with confidence.
At SW Brokerage, we work closely with clients to not only restructure their lending, but also help them understand their cash flow and plan ahead. The key message right now is simple: don’t wait until things become difficult—take action early.
If you have equity and feel that rising rates may impact you, or if you have existing debts you’d like to simplify into one manageable structure, it’s worth having a conversation.
Here are the 5 most important things to get right when Debt Consolidation
- Don’t just lower payments—lower total cost
- Know exactly what debts you’re consolidating
- Be careful of secured vs unsecured loans
- Fix the behaviour—not just the structure
- Speak to a experienced finance broker that understands cashflow
Quick rule of thumb
A good consolidation should:
- Lower your interest rate
- Reduce your total repayment & create cash flow buffer
- Simplify your finances
Book a free 15 minute catch up with one of our finance specialists.