“He that goes a borrowing, goes a sorrowing.” – Thomas Fuller
If you have a number of personal loans and credit card debts you may be tempted to consolidate them with your housing loan and so enjoy a lower rate of interest and even lower monthly payments. This will work fine if you maintain the same level of total repayments but under no circumstances should you let yourself be trapped into paying consumer loans for items such as cars over a 30 year period. Also if the personal loans came about because of poor money management, all consolidation will do is give you a temporary respite. Unless you change your ways, you could soon find yourself in trouble as the personal loans will start growing again and you will have the added burden of the larger consolidation loan.