Debt Consolidation Options in Adelaide
Debt consolidation is a process whereby all of your debts are consolidated into one, easy to manage loan. Your home loan, car loan, credit card and personal loans all come together so you only have one loan to repay with one interest rate. It can stop the juggling act and allow you more freedom and time to live your life.
What Are The Benefits of Debt Consolidation?
Debt consolidation, as well as offering financial peace of mind knowing that you only have one loan to repay, can actually save you a good deal of money.
Consolidated loans have drastically lower interest rates than credit card and hire purchase loans. This means more of your money goes towards paying off the debt, not the interest rate – and the quicker you are out of the debt the more time you have to focus on what really matters to you.
You Can Use Your Mortgage
One way to consolidate your debt is to add to your mortgage as these interest rates are usually lower than other types of credit.
If you do choose this option though, you will need to consider increasing your repayment amounts to make sure that your mortgage ends at the same time as when you acquired it.
Things to Consider Before Consolidating Debt
Check the details of your existing loans prior to starting the consolidation process, as they may have fees or other types of penalties for paying them off before the approved timeframe.
It is worth going over your existing loans and their specific ins and outs with a professional to make sure that you know exactly how much it will cost you to terminate these loans as part of the consolidation process.
We have brokers who can help you with this and advise you on the best process for you and your finances. Call one now on 1300 555 88 for a friendly, no obligation chat.
Contact Us For More Information
AAA Mortgage Solutions in Adelaide can help you with your finances and get you out of some sticky situations. Call 1300 555 888 for more options or click here to contact us.Book a FREE appointment with a professional mortgage broker now!
You may create a saving by consolidating all debts into one loan, and one low interest rate. The total loan is now $300,000 (@ 4.99% p.a.) over 30 years. The repayments are reduced to $1,608 per month. This creates a reduction in payment of $1,673 per/month, freeing up cash for a better quality of life, or you can continue to pay $3,281 per/month saving you Years and Tens of Thousands of Dollars of you loan. This example is based on a Home Loan of $300,000 at 4.99% p.a. over 30 years and paying out all other debts in full.