HANDS UP IF YOU HAVE DEBT!
Don’t worry, it’s not a trick question or anything to be ashamed of. We all have debt.
In fact, we’d be surprised if you didn’t! A credit card here, car loan there, maybe even a little AfterPay or ZipPay – it’s completely normal.
BUT…it all adds up fast and eats into your available cash, not to mention the added stress of trying to keep on top of due dates and trying to manage multiple payments each month.
See, unlike home loans, small value loans like those provided through a car dealership charge a higher interest rate. In some cases, up to 30%. Which could mean you’re paying a lot of interest. That’s money which could otherwise be spent on the things that actually matter to you – like health, fitness, food and adventures – even a home deposit. Yep – it sucks!
Let’s talk Debt Consolidation – It Makes Sense!
Debt consolidation is where you amalgamate all your debts into one lower-cost loan, reducing your overall monthly repayments – and the amount of interest you pay.
Let’s say you have around $17,000 debt from a few small loans such as ZipPay, a Personal Loan and two Credit Cards. Those five individual payments you need to make each month would likely add up to around $570.
If you were to consolidate these five payments into an unsecured personal loan at a reduced interest rate, not only could your payments reduce to around $400 per month over 5 years or around $330 per month over 7 years, you could also pay off your debt within a shorter time period.
With less interest to pay, your disposable income – that’s the income that’s available to be spent as you like – goes up. Leaving you free to spend more, reduce your overall debt, or save for something important to you…like a house.
A consolidated loan is also much easier to track and manage, as there’s just one regular payment to be across, rather than lots coming at you from all directions.
We’re here to help
Get in touch today and chat to one of our finance experts to find out how we could help you increase your disposable income and ease the financial stress with consolidating debt.