Debt Consolidation

Is Debt Consolidation your Journey to Financial Freedom?

Would you like to feel more in control of your financial situation?

If so, it is time to give us a call and discuss your debt.

You may also wonder what will happen to your home loan if your circumstances change.

When aspects of your life change significantly, it would make sense to meet with your broker. We will review your current home loan and discuss what option would be the right solution for your financial situation.

Suppose you struggle to pay off various debts with different repayment dates and interest rates. Then I have some good news for your wallet!

The beauty of this strategy is that it doesn’t require significant changes in how you handle your finances. It will allow you more time without worrying about late payments or missing them altogether because there’s always another payment coming soon- even if it’s months away as opposed to doing things right now, which could potentially land you in trouble much quicker than expected. In that case, consolidating your debt may be an excellent option for simplifying your finances, getting back on your feet and reducing your overall monthly payments.

What is consolidation of debt?

We will keep it simple.

Consolidating your debt means: taking all your various debts, like credit cards, personal loans, car loans and other repayments, and then combining them into one balance, one debt. Then add it to your existing mortgage. You will pay a single charge with one interest rate every month, offering you greater control of your financial situation.

Now that is simple, Yes?

But, Who is Debt Consolidation right for?

Like any other financial decision Consolidating your debt is a big decision.

There are many options for you to consider regarding how best to manage your finance. First, you need to identify what is available for your financial situation. Also, weigh each option’s pros and cons before making a decision that will work out well for now and in the future!

FirstPoint Mortgage Brokers, a team of experts, can help make your decision-making easier; we will always find the best solution for all our customers. We have the knowledge of the law, debt process and options. We will assess your financial situation and find the best solution and strategy for your financial situation.

What are the benefits of “Consolidation of debt.”

• Lower interest rates
• One single set of recurring repayments that are easier to manage
• Greater control of your budget and cash flow.
• A more precise timeline of when you can be debt-free
• Simplify your financials
• Lower monthly repayments

When are debt consolidation loans a good idea?

• Your income is less than your debt repayments every month.
• You are paying very high-interest rates (credit cards).
• You are struggling to keep up with all your repayments each month.
• You have a stable source of income as you’ll need to commit to making the repayments each month.
• You have created a budget and know how much you can afford to pay each month.
• You have a solution for your debt problems.

What types of debt consolidation loans can you choose from?

The good news is that you have various debt-consolidating options available to help pay off your debts. The most common and popular approaches will be covered below, so read on! What you want to achieve from debt consolidation will help you decide which is best for your financial situation.

Refinance using your mortgage

This one is popular among homeowners and is an option for most home loan borrowers. Replacing your current home loan with a new one. The low mortgage interest rates are very competitive next to the higher rate of a personal loan, but it’s essential that you consider all your options before choosing this route.

Refinancing is also a chance to review your current finances and get the most value for your money. Refinancing allows you to optimise your finances to better suit your circumstance and current market trends.

Refinancing can also be used if you are planning to use the equity in your home to make other purchases. Maybe buying a new car or renovating your home or a holiday.

The most important thing for our team at FirstPoint Mortgage Brokers is ensuring you get the best solution for your financial situation and goals.

Credit card balance transfer

Customers of some credit card providers can take advantage of a low promotional interest rate and high initial balance. This allows them to transfer existing debts from other cards.

The important things to consider here are how long the promotional rate applies and what the rate will be once the period ends. The vital thing to consider here is what happens after the promotional rate is finished. Remember that promotions with high fees that offset the low promotional interest rate are very common.

Debt Consolidation is not a cure for all financial problems.

For the loan to work, you need to identify the reason for your financial situation and work on changing that so you don’t land back here again. Remember, credit card consolidation is not a line of credit. You cannot reuse the money you have paid off the credit card. If you use a consolidation loan to pay off your credit cards, it’s up to you not to run into the same situation. If this will be an issue for you, consider closing the accounts.

The team at FirstPoint Mortgage Brokers are ready to take your call and get you back to financial freedom. Call Us to discuss refinancing your current home loan.

Sutherland Shire Mortgage Broker