Debt consolidation
Are your finances keeping you up at night?
With the cost of living on the rise, the burden of managing debt is getting harder for Aussies. Debt consolidation involves combining all your current debts into one, easy new loan with more affordable repayments.
How it helps
Consolidating multiple debts into one new loan can be be easier to manage.
You might secure a better interest rate or loan term to reduce repayments and provide debt relief.
Lower repayments can help to improve your borrowing capacity when applying for a home loan.
Loan terms range between 1-7 years, so you can choose an option suitable for you.
Kelli saved $212 per month!
Kelli had a $22,000 car loan with 10% interest rate and a second $10,000 personal loan with 13% interest rate. Both loans had a 5-year term.
The combined repayments cost Kelli $695 per month and her interest totaled $9,698.
After consolidating her loans into one new $32,000 loan with a 7% rate and 7-year loan term, Kelli now pays $483, saving $212 per month. Her total interest also reduced by $1,129!
Better yet, Kelli's home loan borrowing capacity increased by $25,000!
Points to consider
Debt consolidation doesn't reduce the amount you owe, but it may help to improve cash-flow and reduce interest.
Always seek advice from a qualified lending expert before making any financial decision.
Use a budget planner to track your income and spending habits to find additional areas to save money.