Recent research indicates that over a million Australians have adopted this approach in the past year. By rolling personal debts into a mortgage, borrowers can benefit from lower interest rates; however, this often results in extending the repayment period over decades, potentially increasing the total interest paid.

Financial experts caution that this method can be particularly risky if property values decline. A significant drop in property prices can erode home equity, leaving homeowners with higher debt levels relative to their property's worth. Additionally, assets like cars, which depreciate over time, may not retain their value, yet the debt secured against them remains.

It's crucial for borrowers to carefully assess their financial situation and consider the long-term implications of consolidating personal debt into their mortgage. While the immediate relief of lower monthly payments may be appealing, the extended repayment period and potential for increased total interest paid can outweigh the short-term benefits.

Alternative debt consolidation options, such as personal loans or balance transfer credit cards, may offer more suitable solutions depending on individual circumstances. Consulting with a financial advisor can provide tailored advice to navigate these complex decisions and develop a strategy that aligns with one's financial goals.