It has been reported in recent weeks that while the nation's overall credit card debt that attracts interest charges has dropped 11% in the past four years, our overall credit card debt has reached a record high of $52.2 billion! That is a staggeringly high figure for a country with a population of just 24 million people.

While interest rates across home loans continue to drop at staggering rates and remain for the most part below 5% and lower, the standard credit cards charge interest rates near 20% per annum! Personal loans currently charge around 10% and as noted in recent weeks mortgages are at 5% or less.

Working on these interest rates the cost comparison of $10,000 owing on a credit card (at 20% interest rate) equates to $2000 in interest a year compared with the same $10,000 on your homeloan (at 5%) costing only $500! The exact same amount owed on a credit card is four times as much as if it was owed on a home loan.

Many credit card holders are beginning to be savvy with their outstanding balances and getting smarter about managing their credit card debt by making the most of balance transfer cards offering zero per cent interest, typically for 12 months.

However, it might make more sense to absorb your credit card debt into your homeloan while shopping around for a better mortgage option. With falling interes rates, right now is the best time to reduce your overall debt and simplify your finances into one easy and lower repayment.

Rolling all your debt into one structure such as a home loan may allow you to focus on paying more off that one loan and reducing it faster if you choose. You will also reap the benefits from the variety of flexible structures now available improving cash flow that puts more money in your wallet!