Debt Consolidation
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 your 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:
- You may save on fees and charges.
- Secure a competitive home loan.
- Reduce your monthly repayments.
- Control your finances and pay off your loans sooner.
The home owners in the following case study saved thousands by consolidating their debt into one single loan, and so could you!
Case Study
John and Susan both work full time with average incomes of $70,000 and $55,000 respectively. They have 2 children and purchased their home 3 years ago for $340,000, but it is now worth $450,000. Currently, John and Susan are paying off the following debts:
- Home Loan $340,[email protected]% p.a. monthly repayments $1,675
- Personal Loan $24,[email protected]% p.a. monthly repayments $539
- Credit Cards $7,300 +$5,900 @19.2% monthly repayments $343
TOTAL DEBT $377,200
TOTAL MONTHLY REPAYMENTS $2,557
Result: John and Susan refinanced and consolidated their debt into a $377,200 basic variable home loan at 3.69% p.a. over 30 years. Their new total monthly repayments are now $1,734 saving them $823 a month.
Getting debt consolidation advice is easy. We come to your home or to a location that suits you and ask you some important questions about your lifestyle, your income, the type of loans you have and what your future plans are.
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 home. Other points to consider:
- Fees and charges associated with setting up your debt consolidation loan.
- Control your credit cards, you have now 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 original debt term to ensure you save money.
Thinking of refinancing?
You can be preapproved in just under 2 minutes. Get preapproved today!
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