There is a lot of easy credit available in the market today. In fact credit cards and consumer loans are actively pushed on to us through the mail.

When times are tight it seems to be an easy way out just to take that $7k credit card or increase the time limit on a personal loan.

In effect you are just using income from the future to buy or repay now and this can cause problems down the track.

If you find yourself with increasingly less available money and higher repayments each month then it may be time to consider consolidating your loans into one repayment.

You can achieve this through a personal loan, but remember that personal loan interest rates are higher than home loan rates.

If you have a property in may be worth considering a refinance of your home loan. If you set up a split loan with the consolidated amount in a separate account at home loan rates. By doing this it is encouraged to repay as much as you can as you can turn a 5 year term into 25 years if you pay the minimum.