Have you got credit card debt that you are struggling to pay down?
If so, you are not alone. According to Mortgage Choice’s inaugural Money Survey, 35.7% of Australians owe more than $5,000 on their credit card.
Further, a large percentage of those with credit card debt have admitted to just making the ‘minimum repayment’ each month in a bid to pay off their debt.
While it sounds like a good idea to meet your lender’s ‘minimum repayment’ expectations, the reality is somewhat different. For those that are only making the minimum repayment each month on their credit card, you may not realise that this is actually hurting you financially over the longer term.
As an example, say you owe $5,000 on your credit card which has an interest rate of 14%. Now, if you were to make the ‘minimum repayment’ each month, it will actually take you 21 years and 11 months to pay off your credit card! Further, you will have spent almost $11,000 paying off your $5,000 worth of debt.
If you are one of the many Australians who have fallen victim to making the minimum repayments on your credit card each month because you cannot afford to pay any more, don’t despair – there is light at the end of the tunnel.
When credit card debt gets you down, it may pay to consider consolidating your debt into your mortgage.
At Mortgage Choice in Dandenong, we can help you consolidate your credit card debt, car loans, personal loans and other debt into your mortgage.
Consolidating your debts can help you to not only reduce the amount of interest you are paying, but make your entire financial situation more manageable – saving you time and money in the process.
So why not speak to us about your debt consolidation options today!