Logan Branch News

Should You Refinance to Consolidate Debt?

Written by Del Wiggins | Jan 21, 2026 4:16:35 AM

Should You Refinance to Consolidate Debt?

If you’re a homeowner in Logan, Queensland juggling multiple debts such as credit cards, personal loans, or business finance, you may be wondering whether it’s worth refinancing to consolidate debt.

For many self-employed Australians, tradies and small business owners, managing cash flow can be complex. Refinancing a mortgage to consolidate debt is one strategy some homeowners explore to simplify repayments and improve financial clarity.

Here’s what refinancing for debt consolidation means, when it may be appropriate, and what Logan locals should consider before taking the next step.

What Does Refinancing to Consolidate Debt Mean?

Refinancing involves replacing your existing mortgage with a new loan structure. In some cases, homeowners use refinancing to roll higher-interest debts, such as credit cards or personal loans, into their mortgage.

This approach may:

  • Combine multiple repayments into one
  • Improve cash flow by spreading repayments over a longer period

However, refinancing is not a one-size-fits-all solution and should always be considered carefully.

Why Debt Consolidation Is Relevant for Logan Homeowners

Logan has a diverse workforce, with many residents working in trades, construction, logistics, retail and service-based industries. These roles often involve variable income or periods of fluctuating earnings.

Relevant local context includes:

  • Median household income in Logan is below the Queensland average, which can make managing multiple repayments more challenging (ABS Census 2021 – Logan City).
  • Cost-of-living pressures and interest rate changes have increased household debt levels across Australia (Reserve Bank of Australia).
  • Logan remains an affordable housing market compared to Brisbane, meaning many homeowners have built equity over time (CoreLogic housing insights).

For some households, consolidating debt through refinancing can help simplify finances, particularly where several high-interest debts exist.

When Refinancing to Consolidate Debt May Be Considered

Homeowners may explore refinancing for debt consolidation when:

  • Managing multiple repayments has become difficult
  • High-interest debts are impacting monthly cash flow
  • Income is irregular or seasonal
  • They want a clearer repayment structure
  • They are looking to reduce financial stress

For self-employed borrowers, simplifying finances can be particularly valuable when income varies month to month.

Key Things to Consider Before Refinancing

Before deciding to refinance and consolidate debt, it’s important to weigh up the full picture.

Points to consider include:

  • Any fees or costs associated with refinancing
  • The total interest paid over the life of the loan
  • Whether extending the loan term increases long-term costs
  • How your income stability is assessed
  • Your current equity position

While consolidating debt can reduce short-term pressure, it may increase long-term repayment costs if not structured carefully.

How Lending Specialists Can Help Explain Your Options

Understanding whether refinancing is appropriate depends on your personal situation.

Lending specialists can help you:

  • Review your current debts and repayments
  • Understand how refinancing may change your loan structure
  • Explain how consolidating debt may affect cash flow
  • Explore alternatives where appropriate

If you’d like to learn more about debt consolidation options, you can explore general information here:

https://ratemoney.com.au/debt-consolidation

Is Refinancing to Consolidate Debt Right for You?

For some Logan homeowners, refinancing to consolidate debt can offer clarity and simplicity. For others, it may not be the most suitable option.

The key is understanding how refinancing fits into your broader financial position, especially if you’re self-employed or managing variable income.

Being informed allows you to make confident, considered decisions.

Looking for Clarity on Your Options?

The home loan specialists at Rate Money Logan support self-employed Australians, tradies and small business owners by helping them understand how different loan structures and debt strategies may impact their situation.

If you’d like to explore whether refinancing to consolidate debt is something worth considering, you can book a no-pressure conversation with the Rate Money Logan team.

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