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Debt Consolidation

Living with high levels of personal debt can be financially and emotionally draining. So it’s important to look at ways to get back on track with money management, regain control of your cash and become (and stay) debt-free.

 

Find a solution to reduce your debt

 

Part of the challenge of dealing with unmanageable debt is the need to make multiple repayments to a variety of different lenders. That’s where debt consolidation can help. It works by rolling a number of different debts into a single loan.

Your home loan is often a good choice for debt consolidation as it usually comes with the lowest rate of all types of credit. The downside is that you may be transferring a short term debt (like a credit card balance) into a long term loan (your home loan). Paying a bit more off your loan each month is a sensible step to minimise overall interest charges.

If you’re not a home owner, a personal loan can be a good choice to consolidate debt. The term is fixed so you have a clear end date, and the set repayments are easier to budget for.

Our Mortgage Choice Melbourne brokers or financial planner can recommend the best strategy to consolidate debts for your situation and then action the strategy you have selected.

With your debt streamlined into a single loan, you can start to focus on making a single monthly payment, which can be far less stressful than juggling a number of repayments.

Saving on interest

By opting for a loan with a competitive rate, debt consolidation can also reduce the overall interest charges you pay. This can lower your regular repayments and provide extra cash to help pay off the new loan sooner.

In this way, the debt pendulum starts to swing in your favour, and you begin to take measurable strides towards becoming debt-free.

Understanding the bigger picture

While debt consolidation can provide an immediate strategy to help you gain control over debt, it doesn’t address the underlying problems, which usually involve weak spots in money management.

Our Mortgage Choice Melbourne financial advisers can offer valuable support, helping you learn to live within a budget, manage your money, and work towards financial goals for the future.

 

Refinancing to consolidate debt

Like many Australians you could have several debts – probably a home loan, a personal loan, and possibly even a credit card balance. Having multiple debts means juggling lots of different repayments.

This video outlines some of the benefits of refinancing to consolidate debt.

 

 

Book a 10 minute phone meeting with a consultant of your choice at a time that suits you or call our Mortgage Choice Melbourne office on 03 8602 6777! 

 

If you would need further assistance with Cashflow Management, here's how we can help

Debt is easy to build up and hard to pay off, but with expert help it can be done.

Our Financial adviser is a money expert who can develop debt-reduction strategies tailored to your circumstances. It doesn’t have to mean living on next to nothing until you’ve made headway with debt – it’s all about smart use of your money. We can: 

  • Develop a plan of attack

Clearing your debts calls for a clear plan of action. 

We start by looking at each of your debts to understand the rate you’re paying.  If you’re paying an over the top rate it’s a lot harder to clear the balance. We can help you refinance your debts or consolidate multiple balances into a single loan to save on interest costs. 

It can free up more cash to help eliminate debt.

  • Review your budget for spare cash

We’ll work with you to develop a realistic budget. It can show where you are spending, where you can cutback, and where you can save by getting a better deal.

It all adds up to more money to reduce your debts.

  • A roadmap to become debt free

There is a range of options to dig your way out of debt, and we can crunch the numbers to determine which approach is most effective for you.

It’s not about throwing yourself into repayments, it’s about developing a smart plan. As a guide, we can list your debts according to the interest rate, help you concentrate on paying off those debts sitting at the top of the list, and guide you through the process of clearing each remaining debt. It’s a strategy that can deliver significant savings on interest costs.

  • Don’t be discouraged

If you’re facing unmanageable debt it can be easy to be discouraged by balances declining at a snail’s pace. Your Mortgage Choice Financial Adviser is like a money mentor who can keep you motivated. We’ll be there to help you stay on track.

 

Book a 10 minute phone meeting with a consultant of your choice at a time that suits you or call our Mortgage Choice Melbourne office on 03 8602 6777! 
 

 

 


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