Debt Consolidation Loan/ Lower your Repayments

Debt Consolidation Loan/ Lower your Repayments

What is a Debt Consolidation Loan?

A Debt Consolidation Loan allows you to bring all of your individual debts/liabilities together into one home loan debt, thus replacing all of the individual debt/bill repayments with one regular monthly home loan repayment.

Why consolidate all my debts into a Debt Consolidation Loan?

Consolidating or bringing all your debts together into a Debt Consolidation Loan will improve your surplus cash position (leaving you with more in your pocket at the end of the month) and allow you to better manage the overall debt within your budget. A single regular monthly repayment (which will be a lesser amount than the combined total of all the individual debt repayments) is easier to maintain and you only need to deal with one lender rather than a number of different finance companies, creditors etc.

If you have credit card and personal loan debt, you can also reduce the overall amount of interest that you pay in relation to those debts due to the debt consolidation loan interest rate being considerably lower than that of the personal loan and/or credit card.

Combine your debts and slash your repayments!

Do you have a number of different debts with different lenders?
Are those unpaid bills piling up?

Just by rolling them all into one low rate Debt Consolidation Loan, you could save hundreds of dollars in payments every month and possibly thousands in excess interest payments?

Home loans, credit cards, store cards, overdrafts, personal loans, car loans …………. Bills with periodic payments like Council Rates, School Fees, House Insurance, Car Insurance ……. Consolidate virtually any debt into a Debt Consolidation Loan and have just one manageable debt, at one low rate with a much lower monthly repayment!

How much could be saved per month with a Debt consolidation Loan?

Let’s look at some examples:-

Midge and Sally are married with 2 children. Their combined annual income is $89,000. They have a home mortgage loan with the local building society, a personal loan with the same building society from the swimming pool & landscaping that they put in last summer, a car loan with a major finance company and credit card debt resulting from school fees, education and other small lifestyle expenses

They have always dealt with the local building society due to convenience and the low rates they offer. They also received a good finance rate on their car loan when they replaced the old family car 2 years ago and they recently changed their credit card to a newly advertised low rate card.

Debt

Amount

Payment

Home Loan

$325000

$2318

Personal Loan

$15000

$356

Car Loan

$20000

$567

Credit Card

$12000

$95

 

$372000

$3336

Even with all the great service they are receiving and great rates they have negotiated. They are still struggling and the credit card debt is slowly climbing?

Now let’s look at what happens when they roll all of their debts into a Debt Consolidation Loan,

The Result is x Debt Consolidation Loan Monthly Repayment $2653

A saving of $683 per month!

Sven and Natasha are in their mid 20’s and Natasha has just returned to casual work after giving birth to their first child. Their combined annual income is $80,000 and they are both very interest rate focused. They have a home mortgage loan with a major bank at a special offer discount rate, a car loan at very good new car rate, credit card debt amassed from living expenses while Natasha was on maternity leave and interest free purchases of baby goods & wares which will roll into interest accruing debt within two months.

Debt

Amount

Payment

In 2 months

Home Loan

$325000

$2256

 

Car Loan

$20000

$450

 

Credit Cards

$12000

$95

 

12 month Interest Free Purchases

$5000

$0

$189

 

$362000

$2801

$2990

Even though they had carefully planned for the birth of their first child and they have what they consider to be some of the best finance rates available with a small portion as interest free purchases, their debt level is not reducing and their monthly outgoings are about to increase by a further $189 per month.

Now let’s look at what happens when they roll all of their debts into a Debt Consolidation Loan,

The Result is x Debt Consolidation Loan Monthly Repayment $2384
A saving of $606 per month!

James and Suki are in their late 30’s and have 3 teenage children; two are in high school and one is attending university. James is in permanent employment while Suki has been working on a casual basis for the same employer for some time. Suki works regularly every week but her casual income can fluctuate dramatically depending on the number of hours worked. They have negotiated their finances carefully and believe they have one of the best mortgage products available and some of best finance rates available.

Debt

Amount

Payment

Home Loan

$305000

$2383

Car Loan

$20000

$487

Credit Cards

$12000

$95

Interest Free Purchases

$5000

$0

Bills on late payment

$1000

$166 (if paid over 6 mths)

 

$343000

$3131

Even though they are careful spenders, the uncertainty of fluctuating income, the drain of education expenses and increasing consumer prices have seen them slowly amass a small amount of unpaid bills which they intend to catch up with over the next 6 months. Due to the uncertainty of Suki’s income and the need to find an extra $10300 for education expenses over the next 24 months, they are both concerned as to their ability to satisfactorily meet their future financial commitments plus living expenses.

Now let’s look at what happens when they roll all of their debts and bills into a Debt Consolidation Loan and make equity provision for the education expenses due within the next 24 months,

Current Debts

$343000

Future education expenses

$10300

The Result is x Debt Consolidation Loan Limit

$353300

Debt Consolidation Loan Balance $353300, Monthly Repayment $2497 A saving of $634 per month!


With a Debt Consolidation Loan you can ease the relentless pressure on your cashflow, have more money in your pocket at the end of the week and improve your lifestyle!

At Community BEST we offer FREE complimentary annual home loan and cashflow assessments as an aid in helping our clients keep their finances up to date and on track.

To discuss your Debt Consolidation Options with an accredited Community BEST Lending Strategist, email us with your contact details or phone the Finance Centre on 1300 448 911.

Alternatively, you can submit an application now by completing our 10 minute Online Application

* Loans subject to application and approval. Terms, conditions and eligibility criteria apply. Fees and charges may be payable.