GET THAT WEIGHT OFF YOUR BACK. CONSOLIDATE YOUR DEBTS INTO ONE MANAGEABLE LOW INTEREST LOAN AND TAKE CONTROL OF YOUR FINANCES
|If you’re struggling under the weight of mounting debt and feeling the stress of multiple loans, there is a simple solution. Managing one or two loans may not be difficult; however, once you throw three or four credit cards and other personal loans into the mix, then you may be in difficulty. Refinancing is a quick and simple way to take control of your various debts – but there are few tricks to ensure you get the best deal. First, consider the rate of interest you are paying for each of your loans. Credit cards and personal loans tend to carry a high interest rate and are therefore not the most financially viable loans. So, what is the most cost-effective way to consolidate debts through refinancing?
|If you have sufficient equity in your property, it may be possible to consolidate your higher interest debts into your home loan (which attracts a lower interest rate). So, rather than paying an interest rate as high 14 per cent for a personal loan, you pay less than half (the average home loan carries interest rate of less than 5 per cent for a $300,000 variable rate loan). By consolidating your debt and refinancing your home loan you maybe able to save thousands of dollars that otherwise would be spent on excessive interest rates. You would also rid yourself of some of the stress of managing multiple monthly repayments.
If you are considering refinancing, then now may well be the right time. Record low interest rates and strong competition among the major lenders can only mean one thing, savings are there for the taking.