Lines of Credit

A revolving line of credit is essentially an overdraft where you can at any time draw the loan balance up to the original amount borrowed. Usually minimum repayments on a Line of Credit facility are interest only. Lines of Credit often have higher interest rates than variable rate loans and can be a trap for those who aren't good at budgeting. So if you want the flexibility but would prefer the safety of set monthly repayments, an offset facility is probably a better option.