Why – and how – you should consolidate your debt.

“If you are struggling to manage your debts, it may sound like a good idea to pay someone to roll them all into one consolidated loan.” – Australian Securities & Investments Commision

*Note – Using an independent mortgage broker is free

What is debt consolidation?

When your debt gets out of hand and you find yourself juggling multiple cards and loans, it can be exhausting.=

If this sounds familiar, you’ll be pleased to know debt consolidation can help you reign in your debt and pay it off sooner.

Debt consolidation could help you to combine your outstanding debts into one convenient loan potentially at a lower rate than you currently pay.

That means you can take multiple credit card debts, personal loans or home loans and consolidate them into one loan with one regular repayment. What’s more, an independent mortgage broker like myself can help you do that – for free!

Why – and how – would you consolidate?

Here’s a few reasons why debt consolidation could be beneficial to you:

• A potentially lower interest rate – some of my clients in the past have moved from a 22% interest rate to a 4% interest rate just by consolidating their debts!
• Save yourself a lot of money!
• Repayments that are easy to manage.
• A clear timeline that outlines when you’ll be debt-free.

You might be thinking “That sounds awesome Danny! But how do I do it?”.

There’s a few things to consider before you consolidate your debts.

1. First, you need to gather information

• How much do you owe on each debt?
• What interest rate are you paying on each debt?
• What are the monthly fees on each debt?
• Are there any break costs?

2. Second, you need to work out how much you can pay off monthly

There are a lot of useful budget planners you can use or you can get in touch with me and i’ll personally help you figure this out! Book a call here.

3. Third, you need to explore your options

Now that you know how much debt you owe and how much you can put towards your repayments it’s time to explore options and set up a plan to get rid of the debt.

A certified financial planner or independent mortgage broker can help you with this.

Things to watch out for when consolidating your debt.

Debt consolidation can be risky if you are not careful. Here are some things that can go wrong.

• Getting more debt – If you get access to more credit through your consolidated loan you might be tempted to spend more. Be careful of this.
• Losing your assets – If you turn all your unsecured debts, like credit cards and personal loans into a secured debt, like your home loan, you need to make sure you are able to pay your new home loan otherwise you could lose it, if you’re unable to pay it.

This is why you should always consider a certified financial adviser or independent mortgage broker.

If you are finding your debt difficult to manage, the earlier you take action the better.

For more information and a free consultation book a call with me (Danny) now through this link https://calendly.com/dannymmoney/15min or by clicking the button below.