Debt Consolidation Loans
Are you struggling to make repayments on high interest debts such as credit cards, hire purchases, or personal loans?
Debt consolidation can help reduce your monthly repayments, save you money on fees and charges, and take back control of your debt by consolidating your existing loans into a new lower interest rate loan. Roll all your payments into one! Did you know by using the equity in your house you may be able to consolidate all those loans into one?
Yes that’s right your home loan, car loan, personal loans, credit card bills and hire purchases all can be rolled up into one payment. Now wouldn’t that make life easier! You won’t have to stress about making all those payments, just the one payment can be made that fits in with your pay schedule and your budget.
This is because the cheapest form of finance is your home loan. Consolidating those high interest debts into your home loan can often mean a lower monthly payment and lower interest costs too, saving you money.
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
Let’s dive into an example. These homeowners saved thousands by consolidating their debt into one single loan. You can too!
Greg and Lauren both work full time with average incomes of $50,000 and $52,000 respectively. They have 2 children and purchased their home 3 years ago for $330,000, but it is now worth $430,000. Currently, Greg and Lauren are paying off the following debts:
- Home Loan $322,000 @ 6.45% p.a. – monthly repayments $2,025.00
- Personal Loan $31,000 @ 12.00% p.a. – monthly repayments $690.00
- Credit Cards $4,300+$11,900 @ 16% – monthly repayments $394.00
Total debt: $369,200.00
Total monthly repayments: $3,109.00
What was the Result?
Greg and Lauren refinanced and consolidated their debt into a $369,200.00 basic variable home loan at 6.00% p.a. over 30 years. Their new total monthly repayments are now $2,214.00 saving them $895.00 a month.
What Greg and Lauren had to say
“Getting Advanced Mortgage Solutions to arrange our debt consolidation was the best thing we have done. We now have extra money each month which helps with costs and we have extra to spend on the kids.” Greg and Lauren.
Things to consider before consolidating debt:
There are 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, this can become a horrible reoccurring cycle. Often people refinance short term debt into a home loan and end up paying more over a longer term. Whatever your situation may be, Advanced Mortgage Solutions can create more than one home loan account on a shorter term to replicate the original debt term to ensure you save money.
Are you ready to explore your debt consolidation options?
Contact us today for free debt consolidation advice.Contact us >
Published by Scott Miller
Today's announcement on Mortgage Holidays
With today’s announcement by the Finance Minister about 6-month mortgage holidays, we have been inundated by enquiries from our clients.
A huge thanks to Scott for his knowledge, advice and professionalism through our entire first home buying experience.Jamie Hetherington and Michelle Roundhill - 01 December 2016
As a visual person, I found the steps/diagrams illustrated by Scott extremely easy to follow.Divya Nair and Abhijith Sukumaran - 10 April 2019
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