Struggling to make repayments on high interest debts such as credit cards and personal loans? Debt consolidation can help reduce your monthly finance repayments, save you money on fees and charges and take control ofyour debt by consolidating your existing loans into a new lower interest rate loan.
Debt consolidation can lower your monthly repayments by combining your current liabilities such as credit cards, personal loans and your home loan into a new and more competitive lower interest rate home loan.
Benefits of debt consolidation:
- Save on fees and charges
- Secure a competitive home loan
- Reduce your monthly repayments
- Control your finances and pay off your loans sooner
These home owners saved thousands by consolidating their debt into one single loan you can too!
John and Robyn both work full time with average incomes of $65,000 and $60,000 respectively. They have 2 children and purchased their home 3 years ago for $330,000, but it is now worth $430,000. Currently, John and Robyn are paying off the following debts:
- Home Loan $320,000@7.25% p.a. – monthly repayments $2,182
- Personal Loan $28,000@11.5% p.a. – monthly repayments $731
- Credit Cards $6,300+$8,900 @16% – monthly repayments $369
TOTAL DEBT $363,200
TOTAL MONTHLY REPAYMENTS $3,282
Result: John and Robyn refinanced and consolidated their debt into a $363,000 basic variable home loan at 7.00% p.a. over 30 years. Their new total monthly repayments are now $2,415 saving them $867 a month.
“Getting debt consolidation advice was easy as they come to your home or to a location that suits you and ask you some important questions about your life style, your income, the type of loans you have and what your future plans are.”Bob and Claire, Happy Refinancers
Things to Consider Before Consolidating Debt
The biggest single issue with debt consolidation is that your debt is now considered a secured debt’, so if you don’t pay it back, you risk losing your security’ your house.
Other points to consider:
- Fees and charges associated with setting up your debt consolidation
- If you don’t control your credit cards, you have essentially freed up your credit card to accumulate more debt
Often people refinance short term debt into a home loan and end up paying more over a longer term. You can create more than one home loan account on a shorter term to replicate the origional debt term to ensure you save money.