Consolidating High Interest Debt
Debt Consolidation; one loan to consolidate multiple loan/credit card balances
DID YOU KNOW?
as of June 2019, there are 15,769,092 credit cards in Australia with an average balance of $3,258. This means Australians currently owe $31.3 billion in credit card debt - YIKES
What are the ADVANTAGES to consolidating your debt you ask?
1. Cash savings due to a lower overall interest rate.
2. Paying on time with only one debt, therefore increasing your credit score.
3. Debt free sooner.
4. Simplifying – less paperwork, only one point of contact, more room in your wallet.
A client we dealt with recently had three credit cards that we assisted in tidying up. Each card was at its limit .
There was a $3,000, $15,000 and $7,000 limit card with total monthly minimum repayments per month of $550.
For her to get ahead and start paying the balances down she had to pay $550 plus what ever amount she could muster. But as it goes, there is not often a lot left in the tin after all is said and done for the month.
Despite renting and not owning a property we were able to assist by getting her a personal loan for $25,000 to pay out and close the credit cards. Over 5 years the repayment of the loan will be the same as what she was paying in minimum credit card payments, but instead of staying on the debt treadmill each month she was reducing the loan and she could see that in 5 years all this debt would be paid off.
Consolidating debt is a great way to save interest cost and pay off debt.
What are your options for debt consolidation?
1. Debt consolidation personal loan
2. Home equity loan
Covid-19 is effecting us all so there is no better time to try and consolidate debt, ask us how today