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If you locked in a fixed-rate loan before interest rates began to rise, you may be worried about the upcoming increase in your mortgage when the term you locked in comes to an end. Here are a few tips on how you can avoid a budget shock when your mortgage reverts to a variable rate. When the interest rates first began to rise from their record-low rates, many homeowners rushed to lock in a fixed-term rate to secure a lower, stable rate. The Reserve Bank of Australia estimates that close to 1 in 4 mortgages were ‘fixed’ at the end of last year, which essentially means the rate was locked in for a period. Usually, banks will offer a fixed-rate period of 1, 2, 3 or 5 years. However, for homeowners who had locked in a fixed rate earlier, such as in 2020 or 2021 when rates were much lower, will likely feel the pinch a lot more when their fixed-term ends than those who opted for a fixed rate in 2022 or 2023. This is because the rates jumped up from around the 2 per cent mark to closer to the 6 per cent mark, and this could potentially add hundreds or thousands of dollars to their repayments in interest, depending on the size of the loan. It's difficult to know what the market is going to look like in the future when opting for a fixed-rate, which is usually done from the perspective of knowing exactly what your repayments will look like for a certain term. Unfortunately, all those fixed terms will eventually expire, and homeowners will return to a variable rate, usually paying more interest. Some may fix their loan again when it comes to this time, but it will likely be at a higher rate than the one they were offered in their previous fixed-mortgage term. If you’re finding yourself in this position, here are a few ways you can make the transition a smoother, and hopefully a less stressful experience. Build a buffer A good idea to test how you will be able to manage the higher repayments is to start putting a bit extra into savings between now and the end of your fixed rate mortgage term. A starting point for this could be to use a mortgage calculator to identify a ballpark of what your new repayments will be when the fixed term ends, and put the difference into a savings account. This will give you an idea of how the household budget will be affected, plus you may even benefit from extra interest in the savings account too. Some fixed-term loans also allow you to make extra repayments, which could help ease the burden when the mortgage increase occurs. At Horizon, we allow up to $30,000 in extra repayments each loan anniversary year, which helps reduce the term of the loan. Horizon also allows you to redraw on those funds free of charge if you require them. Adjust the budget If you work out the new higher repayment and it’s looking tight budget-wise, you may need to look at making some cutbacks. Firstly, look at scaling back discretionary spending where it’s feasible, such as limiting dining out or getting takeaway meals and subscriptions or entertainment activities that are not necessary. Reviewing your budget is always a good idea to ensure you are using or saving your money effectively for your household. Many online tools can help with budgeting and identifying leaks, such as MoneySmart’s budget tool.  Horizon Bank also has some budgeting tools and tips to help out.  Come up with a plan of action It’s important to have an action plan before the fixed-rate term ends so you’re prepared for the change in repayments. A good start is to discuss with your lender everything you need to know before the rate changes; for example what rate you will be offered if you were to fix the mortgage again, or what rate you will be offered if you were to stay on a variable once it reverts. Sometimes there’s a difference between what a new customer and an existing customer would be offered ratewise. If you’ve been with your bank for a while and have always made repayments on time, you may find your bank is willing to negotiate to keep your business. If you’ve paid off more than 30% of the value of your property, you may find you’re eligible for a rate discount. If you want to go into another fixed term loan, it’s also wise to think about that in advance so you can do the sums and get things started promptly.  However, if you decide that you want to refinance to another lender, don’t forget to weigh the costs against the savings. Some lenders will charge exit and application fees, so it’s worth doing your calculations to see if refinancing makes sense for you and your situation. Finally, if you’re having trouble paying your loan and this is causing you anxiety, you can always speak to your lender’s hardship team or a financial counsellor for free via the National Debt Helpline: 1800 007 007.   The end of a fixed-rate mortgage term can be a challenging transition, especially in an environment of rising interest rates. However, you can navigate this phase with minimal financial discomfort with careful planning and strategic decision-making. Building a financial buffer, adjusting your budget, and outlining a clear plan of action are all effective ways to prepare for the increase in repayments. Remember, open communication with your lender is key. Understand the new rate you'll be offered, negotiate if possible, and consider all your options, including another fixed term or refinancing, always weighing the costs against potential savings.   With the right approach and resources, you can manage this transition smoothly and maintain control over your financial future. For more information on home loans and navigating changes in mortgage rates, visit Horizon Bank today. We’ve got the Illawarra and South Coast covered with branches located in Thirroul, Wollongong, Albion Park, Berry, Nowra, Ulladulla, Moruya, Bega, Bermagui and Merimbula.  

What is home equity? Home equity is the portion of your home's value that you own outright, free and clear of any loans. It grows as you pay off your home loan and home values appreciate. So, if you have been in your home a few years, chances are good that the home equity has grown too. That growth could mean an opportunity to refinance your loan. Let’s explore this further. Loan refinancing Loan refinancing typically involves taking out a new loan with better terms than your existing loan and using it to pay off the balance of the old loan. The new loan may have a lower interest rate, which could save you money every month on your mortgage payment. Or, it may have a shorter term, which could save you money over the life of the loan by pay it off more quickly. How to calculate equity When it comes to personal finance, one of the most important concepts to understand is equity. Equity is the portion of a property's value that is owned by the homeowner, and it can have a significant impact on a family's financial stability. Calculating equity is relatively simple: it is simply the difference between the property's current market value and the outstanding balance on the mortgage. For example, if a home is worth $200,000 and the mortgage balance is $150,000, the equity would be $50,000. Families with high levels of equity are typically better positioned to weather financial challenges, such as job loss or medical bills. Furthermore, equity can be used as collateral for loans, making it an important asset for many homeowners. What is LVR? Loan to Value Ratio (LVR) is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. The asset is usually a property, and the loan is usually a mortgage. Lenders use LVR to assess the risk involved in lending money, as it represents the amount of equity that the borrower has in the property. A high LVR means that the borrower has less equity and therefore more risk, while a low LVR indicates that the borrower has more equity and less risk. In order to calculate Loan to Value Ratio, simply divide the loan amount by the value of the property. For example, if you are looking at purchasing a property worth $500,000 and you have a deposit of $100,000, your Loan to Value Ratio would be 80%. This means that you would have 20% equity in the property. Factors that influence equity There are a number of factors that can influence the equity in your home. The most important factor is the value of your property. If your home is worth more than you owe on it, then you have equity. However, if you owe more than your home is worth, then you have negative equity. Another important factor is the amount of money you have paid into your mortgage. The more money you have paid, the more equity you will have. Additionally, the length of time you have been paying into your mortgage can also influence equity. If you have only been making payments for a short period of time, then you will have less equity than someone who has been making payments for a longer period of time. Finally, the interest rate on your mortgage will also impact equity. A higher interest rate will mean that more of your payments will go towards interest, rather than principal, and as a result, you will build equity more slowly. Ways to increase equity in your home If you're looking to increase the equity in your home, there are a few things you can do. One is to make sure that your home is well-maintained and updated. This means keeping up with necessary repairs, painting the interior and exterior of your home on a regular basis, and making any other cosmetic upgrades that may be needed. Another way to increase equity is to pay down your mortgage as much as possible. This will reduce the amount of interest you're paying and increase the portion of your home that you own outright. Finally, you can try to increase the market value of your home by making strategic improvements that will appeal to buyers. These could include adding another bedroom or bathroom, or updating the kitchen or flooring. By taking these steps, you can help to increase the equity in your home. If you are thinking about refinancing your home loan, be sure to consider the costs of refinancing, such as application fees and closing costs, before making a decision. Horizon Bank is here to help you with your banking needs. Visit us at a local branch or online to learn more about our refinancing options. Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong.

What is a Loan? A loan is an agreement between two parties, where money is given in exchange for repayment of the loan principal amount plus interest. Loan terms are agreed to by each party before any money is advanced. A loan may be secured by collateral such as a mortgage or it may be unsecured such as a credit card or personal loan. There may be additional costs for taking out a loan including establishment fees, annual or monthly fees and solicitor or conveyancer fees if requires. A loan can be set at a fixed amount, or it could be available as an ongoing line of credit up to a maximum amount. There are various types of loans available including secured, unsecured and commercial a loans. Horizon Bank has been serving customers since 1964. You can learn more about our history on our website. Our goal is simple: To provide our members with the highest level of service while offering competitive loan rates and terms. We know the importance of accessing quality financial services. That's why Horizon Bank offers several ways to access money when you need it. Whether you're planning for an upcoming holiday, paying off debt, or buying a car, Horizon Bank has what you're looking for. At Horizon Bank, we offer a range of home loans, mortgages and home loan refinancing options at competitive rates. We can assist in helping you achieve your financial goals in a way that suits your needs. Compare our home loans Our experienced team of professionals will guide you every step of the way. We understand that life happens, and when it does, we'll also work to find solutions for unexpected situations such as changes to employment or family dynamics. Horizon Bank understands that sometimes things come up that require immediate attention. That's why we have 24 hour, 7 days a week online banking access. You can check balances, transfer funds, pay bills and manage your loan. If you prefer to speak to a real person, we've got friendly staff who are ready to handle your queries. Contact us today! Key Points: A loan is an agreement between two parties where one gives up something (the principal) in return for receiving something else (interest). Loans can be for a fixed amount or a continuing line of credit. A line of credit gives consumers access to cash at competitive rates without paying back the entire balance upfront. Why do you need to understand loans? Loans are a form of debt incurred by individuals or entities. A bank lends money (or credit) to use at their discretion. If you agree to these terms, you're agreeing to pay back the loan plus finance charges and interest. This is why it’s so important to understand loans. Let's take a look at how the loan process works. When one applies for a loan, a lender might ask borrowers questions including the purpose of the loan, whether they've had any previous loans, if there are any liens against them and what their existing expenses are. A lender may require collateral to secure a loan. Examples of collateral include savings, an existing mortgage or a motor vehicle. Before approving a loan application, an experienced lender will evaluate a borrower's credit history and income level. Depending on the applicant's creditworthiness, the bank either refuses or grants the loan request. When a bank denies the loan application, they will generally provide a reason. Once an application has been submitted for approval, both parties agree upon its terms. After receiving the funds from the bank, the borrower has to pay back the entire amount plus any additional fees and interest charged by the bank, in either weekly, fortnightly or monthly instalments. What types of loans does Horizon Bank offer? Loan Types Home Loan A home loan, also known as a mortgage is an amount of money borrowed from a lender (usually a financial institution) so that one may buy property, such as a house, apartment or townhouse. At Horizon Bank, a mortgage is usually for a fixed length of time (25–30 years). A minimum monthly repayment is calculated on the principle amount and the interest rate. A loan agreement between the lender (Horizon Bank) and borrower will specify when repayments must occur, which may be weekly, fortnightly or monthly. Find out how to choose a home loan Investment Loan An investment loan is simply another name for any type of loan used to fund the purchase of an investment property. Horizon Bank offers both principal and interest and interest only investment loan. With principal and interest Investment Loans your monthly payments go toward both your interest costs and your loan balance. You will, over time, pay off the debt. An interest-only loan, is a loan where you pay only the interest on the loan and not principal. This will mean lower monthly payments for a fixed period but you’re not paying down the debt. Eventually, you're required to pay off the full loan either as a lump sum or with higher monthly payments that include principal and interest. Five things to consider before purchasing an investment property Car Loan Horizon’s Car Loans are loans taken out so that people can buy cars, motorbikes, caravans & boats. Car loans allow you to borrow a specific sum of money to buy a new or used motor vehicle or other motorised recreation vehicles listed above. You repay the bank by paying back some of the principal amount plus interest. To repay the car loan, you must complete the repayments over the term of up to 5 years, agreeing to repay the loan usually in monthly payments. At Horizon, you can repay the loan earlier than the fixed period without penalty. You’ll pay back not just the principal but also any interest charges too. Our Car Loan Calculator works out roughly how much the repayments are over the term of the loan, but it’s ideal to have a chat with one of our professional lenders. Here’s how to apply for a car loan with us Personal Loan Personal loans are a way to borrow money for personal use. A personal loan gives you access to an immediate lump sum of cash when you need it most. Personal Loans are unsecured. That is, no collateral is required because loan amounts are generally relatively small (relative to a home loan for example).Personal loans are usually, but not limited to, used for consolidating debt, paying for a holiday, or buying whitegoods and furniture etc. Borrowers then repay their loans by paying off the principal balance plus any accrued interest at regular intervals throughout the life of the loan. There may be additional charges, such as an administrative charge, monthly fee or late payment penalties if you don't repay your loan by its due date. What you can buy with a personal loan Credit Facilities Visa Credit Card information A credit card is a way to borrow money or access ‘credit’ from a financial institution. The credit card has a set amount of funds called a 'limit’. This limit is set when you apply for a card. Credit cards are widely accepted and can be used to make purchases over the counter, online or over the phone. Like all debts, you need to repay the credit card. A Credit card has an interest rate, which apply to amounts that you haven’t paid back. There’s a minimum monthly repayment and cards may attract an annual fee. It’s important to consider whether you can afford the repayments on a credit card before you apply. Tips on applying for a credit card Line of Credit At Horizon Bank, our line of credit product is called a Budget Overdraft. This line of credit has a set limit, but is a continuing credit product, which means there is no set end date you need to repay it by. You only pay interest on what you use. For example, if your line of credit is set at $5,000, and you have only used $2,000 in the month, you will only pay interest on $2,000. Loan Calculators Loan Repayment Calculator  Personal Loan Calculator  Car Loan Calculator Borrowing Power Calculator Purpose Loan type Buying furniture Budget Personal Loan Going on holiday Line of Credit Upgrading your car New Car Loan Buying a home Home Sweet Home Loan Buying an investment property Value Plus Residential Investment Loan If you’re looking to purchase a home, investment property, car, motor bike, boat, caravan or any other item that requires a loan, contact us today! We offer quick answers on applications, competitive rates and flexible terms so you can make it happen as soon as possible. As a customer-owned local bank on the South Coast and Far South Coast, we work hard to earn your trust. That means we’ll always do everything to ensure you receive the best customer service possible. If you ever need someone to talk to about anything related to your account, please get in touch with our friendly and local based team. Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank. 

Should I refinance my home? If you’ve been paying off your home loan for a few years now, it may be a good time to re-evaluate your home loan and ask yourself “should I refinance my home?" First let’s look at what refinancing is, and the pros and cons. Refinancing – what is it? Refinancing is moving your home loan to a new product with a more competitive interest rate or better features than what you currently have. This could be with your current lender or a new one, depending on eligibility requirements. You can save money by switching to another loan, by having lower repayments or by not paying loan administration fees. However, the key question you need answered is “when should I refinance my home?” Let’s look at that next. When should I refinance my home? If you’ve been on a fixed rate loan and the end of the term is coming up, now would be a good time to look for a better rate. If you want to consolidate debt, or are struggling with repayments, refinancing to a basic ‘no frills’ home loan may be an option worth considering. Accessing equity in your home for renovations or to purchase another property are also reasons to refinance. If interest rates are starting to rise you may consider changing your variable home loan to a fixed home loan. A fixed loan will give you the peace of mind of knowing your repayments will remain the same over the course of the fixed period. When shouldn’t I refinance? Some key scenarios where refinancing may not be financially viable is if you’re about to move house. When you sell you're settling your loan on that property and likely taking out a new loan for another property anyway. Other times where refinancing may not make sense is if you're still making repayments during a fixed rate term, or if you own less than 20% of your property value (as you’ll likely have to pay lender's mortgage insurance again). Using a refinance rates calculator can help you work out whether you'll save or spend money by switching your loan. If the value of your home has fallen, you’ll find yourself refinancing in negative equity. This is not ideal, as you're paying more for a home than what it is worth. Put off refinancing and make regular weekly or fortnightly repayments to get on top of your repayments (if the original idea was to refinance to a lower rate)  Review Your Current Loan  Work out how much you’ve paid off and how much you’ll be paying in interest over the remaining life of your current loan.  Also ask yourself if your loan’s features are still working for you or if you’re looking for something extra. Redraw facilities and offset accounts are just some of the features available to you when you refinance. While you’re reviewing your loan, take into account any ongoing monthly or annual fees you’re likely to be paying. Check out how much it will cost to exit your current loan. This means taking note of any early exit or termination fees. If you have a fixed rate loan these are likely to be quite high, which may outweigh the benefit of refinancing. There's no harm in asking your current lender for a better deal. Do a Home Loan Comparison   The home loan and lending market is very competitive and there are many options to choose from. When shopping around for current refinance rates, the key things to look out for are fees and ‘introductory’ or ‘honeymoon’ rates. Check to see how long they last before reverting back to a higher standard rate. Keep in mind that not all rates are available when refinancing, which is likely to happen if you want to stick with the same lender. Some lenders do not accept refinances for certain loan products, instead they’ll be for new business only. Use our loan comparison calculator to see how much different home loans will cost you. If you're looking to refinance your Home Loan to Horizon Bank, but are not sure where to begin, get in touch with our friendly team today and let us help you on your journey.  Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.

Choosing a home loan can be a daunting and overwhelming experience – especially for first home buyers. With rates and rules around lending and eligibility changing all the time, it can be hard to get a grasp on which home loan is relevant for you and your situation. In this blog we’ll run through the types of loans on offer and what they’re used for. Principle & Interest Home Loans These types of home loans are comprised of two components; the principle and the interest. The principle is the whole amount you need to borrow to purchase your desired property. The interest is the rate that’s charged and added to your principle amount. Your repayments will be comprised of the principle and the interest. Principle and interest home loans are normally for buyers and first home buyers of their primary place of residence. Compare our Home Loans Interest Only Home Loans   Interest only home loans, as the name suggests, is where you’re only paying off the interest charged on top of the principle amount borrowed. Your repayments will be comprised of the interest charges only. While this sounds appealing, you need to be aware of any introductory periods that revert to principle and interest repayments, as your repayment amount will increase. Interest only lending is suited to investors taking out a mortgage to buy an investment property, as the interest only repayments provide certain tax benefits. They’re also good for managing short-term loan needs. For example, you might need it for a bridging or construction loan. Get in touch for interest rates Variable & Fixed Home Loans The other key feature of a home loan is whether to go with a variable or a fixed interest rate. There are advantages and disadvantages to both. Fixed home loans provide the convenience of a fixed rate mortgage for a term of either 1, 2, 3 or 5 years. After your term is up, the rate will usually revert back to the bank’s standard variable rate unless stated otherwise in your loan contract. The benefit of a fixed home loan is you know exactly how much your repayments will be each month and your rate won’t change during the fixed period. The main disadvantages are that fixed home loan rates are usually a bit higher than variable rate loans. They can have higher set up fees and break costs and banks will usually limit how much you can pay off your loan in a year. Variable rate loans are often lower than fixed rate loans. Variable interest rates can change at the bank’s discretion. If the rate rises, so will your repayments which may affect your budgeting and saving. Conversely, if the rate decreases, your repayments will reduce. This gives you an opportunity to pay the loan off quicker if you keep your repayments the same. Use our loan repayment calculator to see the difference in repayments would be with the two different types of loans’ interest rates. Choosing a Home Loan Based On the Features You Are Looking For Choosing a home loan is all about considering your current situation and making an educated decision as to whether the loan set up will suit you long term. A fixed rate home loan is great for fixed repayments that won’t change during the specified term. However if you want to pay off more than the minimum monthly repayment and make lump sum repayments where you can, it may not be the best choice. Considering additional features such as a redraw facility or an offset account are great ways to make your savings reduce the interest charged on your home loan and to pay it off quicker. You can compare our home loans and their comparison rates by viewing our home loan comparison table. We also have a range of mortgage calculators you can use to get an idea of what your repayments may be. Frequently Asked Questions How much can I borrow? The total amount you can borrow will be dependent on a number of factors such as income, expenses and existing debts. Use our borrowing power calculator to get started. What will my repayments be? Your repayment amount will depend on how much you borrow from us, your interest rate, and how often you make repayments. Use our repayment calculator to get started. How do you refinance a home loan? If you have your home loan with another lender and would like to refinance to Horizon Bank, check out our article on refinancing or get in touch with any questions. If you’re looking for a Home Loan, but not sure where to start, get in touch with the friendly team at Horizon Bank today and let us help you on your journey. Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.

What is debt consolidation? Debt consolidation is combining all your existing debts together into one new debt, which can help you manage your repayments and give you a clearer picture of your personal finances. You typically do this by taking out a new personal loan to repay your other existing debts and then paying this new loan back over a set term. Debt consolidation may be a suitable option to help reduce the stress of multiple debts, repayments and interest rates. Paying off more than one debt at a time is not uncommon. Many households now have a mortgage, car loan and credit cards to juggle. However, if you're struggling to balance your debt repayments, debt consolidation may well be worth considering. To start, see if you can relate to the following scenario: A scenario that could lead to debt consolidation Here’s where you could benefit from debt consolidation: Let’s say you have a regular credit card, and you’ve also taken out a store card to buy a new fridge with 12 months interest-free. You decide to concentrate on paying off your credit card because you have a whole year before interest kicks in for the store card. Flash forward to the 12-month mark. Suddenly, your hot water system needs replacing and you’ve found out you need expensive dental work done. Unfortunately, your credit card is maxed out, and the store card for the fridge with its high interest has now been added to the repayments. One repayment’s due on the 15th of each month, another on the 30th. You’re finding it hard to meet your repayment obligations and are starting to wonder how you’ll manage. While these purchases can be justified and were affordable at the time, with unexpected emergencies things can get hard to handle. And when debt causes stress, it’s time to take back some control. How to consolidate debt Gather documents and information about all your debts In order to take control of your debt and get on top of your finances, it's essential to know how much debt you have. Log into your Online Banking or print out statements and review the following: How much do you owe on each debt? The interest rate you are paying on each debt What are the monthly fees on each debt? Any break costs Debt consolidation and refinancing Before consolidating your debts or refinancing existing loans, it's a good idea to compare the interest rate for the new loan (as well as the fees and other costs) against your current loans. Make sure you can afford the new loan repayments. Speaking to one of our lenders about your options is a great place to start. Things to consider: If the new loan will be more expensive than your current loans, it may not be worth it. Other costs, such as application fees and any other fees associated with securing your loan against your home or other assets. The term of the loan. While a lower interest rate will help loan repayments, a longer term could mean you pay more in interest and fees in the long run. Look for the comparison rate. This is the true cost of the loan, factoring in fees and other costs. Do consolidation loans hurt your credit score? Every application for a loan or credit is included in your credit report. A consolidation loan will not negatively impact your credit report if you make the repayments and avoid defaulting on those repayments. What is the best loan to consolidate debt? A personal loan is an ideal loan for debt consolidation. At Horizon Bank, our range of personal loans can be secured or unsecured depending on your individual circumstances. There are many options available; speak with one of our lenders to see what suits your financial needs. Taking out a personal loan can also help with your budgeting and money management. Whilst credit cards only require you to make minimum repayments, with a personal loan you’ll have to make set repayments that cover both the loan amount and interest, which you know will end at a certain date. The easiest way to do this is to set up a payment schedule. This will also encourage regular saving and discipline with your money. We can also help with making automatic repayments. Get the help you need If you're finding your debt difficult to manage, the earlier you take action the better. You can access financial counselling information from ASIC’s money smart website. Get in touch with the friendly local team at Horizon Bank today.  We're here to help you with your banking needs. Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.