DEBT REDUCTION / CONSOLIDATION
Consolidating your debts, from different loans, into one loan can be a very effective strategy for reducing your monthly bills.
Monthly bills are reduced because smaller debts, such as credit cards, store cards, car loans, or other personal loans are typically on a higher interest rate than you may be able to get as a home loan.
Provided you have a certain amount of discipline a debt consolidation strategy can result in just the one bill each month, instead of multiple bills.
Here’s an example of debt consolidation at work:
(assume all rates are fixed and interest only for the purposes of this example)
Before consolidation Monthly payment
Car Loan ($20,000 loan at 12%) $200
Visa Credit Card ($5,000 at 19%) $79
MasterCard Credit Card ($5,000 at 16%) $67
Current home loan ($250,000 at 9.5%) $1,979
= 4 bills; Total Loans $280,000; Total monthly payments $2,325
After consolidation
into a lower rate home loan Monthly payment
= 1 bill; Total Loan $280,000; Total monthly payments $1,983
Saving: $342 per month, or $4,100 per year
Please phone or email us for an obligation free consultation and enjoy a delicious, freshly made, café-quality coffee or tea at our new office in Mt Gravatt (plenty of street parking).
It costs you nothing to find out if it’s possible for you.
How do you Choose your Credit Card?
We can find you the right loan but how do you find the right credit card? With so many credit cards on offer and with many different features such as interest free days and varying fees, this site has investigated whether it's possible to have a credit card which won't cost you a cent. They compare cards, rates, rewards programs and other features and list them in a simple to follow table. Click here to view.
