How debt consolidation can make a big difference

Most people at one time or another experience being in some financial debt that makes them a little uncomfortable. Especially after Christmas, repayments on credit cards, personal loans, car loans and mortgages can feel a bit out of control. So, now might be the perfect time to find out if debt consolidation could help you feel more in control, as well as save you money in the long-run. The key to making your debts easier to manage is finding the right strategies with the help of an expert – like us at Mortgage Choice in Arundel & Broadbeach.

Firstly, what is debt consolidation?

Basically, debt consolidation is combining your separate debts into a single, low-interest loan. The main benefit is that you can reduce the amount of interest you were paying on higher interest debts like credits cards, as well as lowering the size of your repayments. Debt consolidation also reduces the number of repayments you need to make to a single one, which may have previously been several payments to a bunch of different lenders.

There are several ways that this can work and different strategies that you can take to get there, so it’s smart to talk to an expert. Our Broadbeach and Arundel-based mortgage brokers have helped many customers save plenty of money through restructuring their loans and debts.

Here’s a little bit about debt consolidation, and why you should speak to us, your mortgage brokers at Arundel Plaza and Pacific Fair, about tackling your debts.

There are several options to consolidate debts

While debt consolidation is usually a straightforward process, it’s worth having an expert look at your specific situation to make sure you’re getting the most benefit out of it.

If you’re already paying off a mortgage, then combining other debts into your home loan is an effective way to improve your everyday cashflow. Plus, home loan interest rates have never been lower, so you can save a lot of money by letting us help you combine all your debts into a home loan that’s below 2%!

Another option is to combine debts into a lower rate personal loan. If this strategy is better for your situation, you’ll just want to know that it will still be putting you on the right track to pay off your debts in a reasonable amount of time.

Our mortgage brokers in Arundel and Broadbeach have helped clients at every stage of debt consolidation, using financial strategies learned from years of experience. We are certain that our team can help you too!

Know that not all debts are ‘bad’

While paying off all your debts is an excellent goal to have, it’s important to remember that not all debt is ‘bad’. For example, your mortgage is financing an asset that should rise in value over time. If you can comfortably make your mortgage repayments, then this type of debt will be beneficial in the long run with the increasing value of your asset when you eventually want to sell.

Debts become a bigger problem when you’re paying high interest rates and where there are several debts impacting on your cashflow and time to manage them. When people have multiple credit cards, along with other loans that carry higher interest rates (like some personal or car loans), these types of debts can spiral out of control if you’re not careful.

Speaking with our mortgage brokers will help you identify what debts could be causing you more pain than good. We will put strategies in place to help you pay off your ‘bad’ debts more quickly and consolidate the money you owe into a much more manageable repayment.

Helping you from debt consolidation to debt elimination

Once a client has cleared their credit card and other debts through debt consolidation, there is often a temptation to start spending again. It’s understandable, especially when those multiple repayments suddenly disappear, and your credit card balance is zero. However, it’s critical to remember that the debt is still there, even if it’s only one payment and carrying less interest.

Responsible and experienced mortgage brokers, like our team, will coach you on how to keep paying down your debt. We can give you strategies that are realistic and fit with your lifestyle. Plus, you won’t need to pay for our service at any time.

Many Debt Management Service providers charge to help you reduce your personal debts, but if you’re already in debt, then why should you pay more? It makes sense to sit down with our team to come up with tailor-made strategies without having to pay an extra cent.  

Discover how we can improve your debt situation while saving you money

Mortgage Choice in Arundel and Broadbeach are always excited to help clients consolidate debts to make things a little easier. Our mortgage broker experts will navigate through hundreds of options and do all the legwork for you to save time, effort and get you the right finance solution with the goals of saving you money.

Contact us for a no-obligation appointment to discuss all your options. Call 07 5676 6433 for Mortgage Choice in Broadbeach and 07 5594 6746 for our Mortgage Choice in Arundel office. You can also book a free, no-obligation appointment online with one of our mortgage brokers directly at our locations - click to book for Broadbeach and Arundel.