As the personal loans are stuck on fixed rates, some very attractive and competitive mortgage rates are currently being offered by many lenders. Thus if you have other debts in addition to your mortgage, this could be a good time to consider reviewing your finances.

It is possible that you may be paying much higher interest on your personal loans. Moreover, if you have any outstanding credit-card balances, this would mean that you may be paying between 15% and 20% interest each year.

Also, due to the recession, credit card providers are much more reluctant to give credit to new customers. This has made switching of credit cards much more difficult. It is not possible now for customers to switch their debt to another card company in order to get a zero interest rate for a while.

Therefore, debt consolidating is not only necessarily the right thing for everyone, but it can help make things more manageable in difficult time.

If you consider refinancing short-term debt on to a longer term one, it is much more likely that you will end up paying greater interest overall, even if the interest rate is lower.

Not every lender offers debt-consolidation, and different lenders have different criteria, thus it is better to check with the lender before submitting an application.

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