Why you should consolidate your debts? There are a number of reasons to consolidate your debt as follows:
To save on interest payments – your mortgage is by far the lowest interest rate you can get. For example your credit card maybe on 23%, or even more for short term loans, but your mortgage is on around 11.5%.
To save on monthly account fees - it is likely that every account you have charge you monthly account fees. By moving all of your debt into a mortgage you will only be paying one account fee. Also, by having many debts if you miss a payment you will be incurring penalty fees.
Administrative hassle – you now only have to make one monthly repayment rather than multiple payments to all your the lenders you owe.
Improve your Credit record – by making only one payment a month it is far less likely that you will miss a payment and hence it is likely that your ‘payment profile’ will improve.