DEBT CONSOLIDATION AND REDUCTION
 
With credit card offers galore and personal or car loans, people do not realize the extent of their debt and more importantly the interest bill. This can run into big figures and nearly as much as doubling your repayments when combined with your home loan. All this amounts to huge interest repayments when you consider credit card rates of up to 18.75% or more; even personal loan rates at 12.5%.
 
What's the answer? Perhaps you should consider refinancing all your debts into one personal loan thereby reducing the interest rate by up to 33.33% less and dramatically reducing the monthly repayment. Wouldn't that take away some of the pressure off your budget. (If you don't have a budget perhaps you should visit our Debt and credit management page)
 
Better still you could consider refinancing your home loan and roll all you other loans and card debts into the home loan at home loan rates. Let's look at a typical scenario:-
Current Debts                    Monthly Payment
Current Home Loan  $200,000       $1374
Visa card                           5,000            150
Master card                      10,000            300
Amex                                 7,000            210
Car Loan                          25,000            513
TOTAL                         $247,000       $2547
 
New Loan                                            New Payment
Home Loan               $248,000          $1706
 
Boy would that save you some dollars and a lot of headaches? Over $840 savings.
 
But we would probably save you more by finding you a loan with a discounted interest rate and we would encourage you to pay off a  higher monthly figure, so that not only are your total repayments less, but you pay less interest dollars overall. Again you should consider our Debt and Credit management Program which would assist you in obtaining your goals of saving money and paying off your loan earlier.
 
Regardless of where your debts are placed you still owe the same debt, so don't be afraid of a higher home loan. You would still owe this money but now you have the ability to pay off your debts earlier and pay less to the lenders. That means more in your pockets. You could be talking of saving many thousand's of dollars.