YOU might not realise it, but any unsecured debt you have can reduce your ability to borrow for a home loan.
Unsecured debt refers to any type of debt that doesn’t need any form of security to back the loan. Credit cards are a popular example, with Australians currently owing about $32billion on credit cards – an average of about $4200 per cardholder, according to ASIC.
Other examples of unsecured debt include short term personal loans – often called “payday loans – and student loans. The repayment term of an unsecured loan is usually short – up to five years – although some lenders may offer loans repayable over a longer period.
Credit cards
Any existing debt commitment impacts your ability to borrow for a home loan. Unsecured debts lik…
Read the full article at: https://www.northernstar.com.au/news/warning-unsecured-debt-can-hurt-your-borrowing-pow/3264437/
