debt consolidation information and additional resources.
Debt Consolidation can lower monthly loan repayments for borrowers with multiple loans.
A typical borrower in Australia is often needing to consolidate their mortgage, credit card debt, store cards, personal loan and and car finance into one loan. Consumers looking to consolidate debt comprise 11% of all finance applications in Australia.
If you have equity in your own property to borrow against it may be possible to use debt consolidation to reduce your collective payments by as much as 50%.
The key is to have sufficient equity in your home to cover the additional borrowings. It is this equity that provides your lender with security over the extra loans being folded into your mortgage.
For people lacking in financial discipline, debt consolidation is only part of the solution to their problems. The root cause of the initial problem also needs to be addressed (see below) or debt can still spiral out of control.
Spending less than you earn and only buying assets that increase in value, rather than liabilities that decrease in value, is the only true way to financial independence and wealth creation.
Debt Consolidation Calculators
Debt Consolidation Calculator
This calculator will show you how consolidating your all of your debts into one lower interest loan can reduce your monthly payments.
Accelerated Debt Payoff Calculator
This calculator will show you how much time and money you could save by paying off your debts using the "rollover" method.
Using the rollover method, as each smaller debt is paid off, the freed-up payment amount is then applied to the next larger debt,
and so on until all debts are paid off. As you are about to see, the rollover method can save you a ton of money in interest
charges, and get you debt free in a very short period of time.
Strategies for Debt Consolidation
1. Stop using your credit card immediately and see if you are eligible for a debt consolidation loan by filling out the online enquiry form at the Home Loan Club
2. Once you have been approved for a loan and it has settled then cut up your credit card and close the credit card account. If you don't do this you are almost guaranteed to fail!
3. Set aside sufficient cash in a high interest bearing term or savings account to cover you for emergencies. If you don't have enough cash you may need to borrow extra with your loan.
4. Make increased repayments on your new loan over and above the required repayment amount. Try to pay down the extended part of your loan in less time than you would have done previously. This should be possible because you are paying a lower interest rate.
5. With all future purchases, save up the full amount, pay cash and ask for a discount. If you can't pay cash then don't buy it!
6. Set up a weekly budget and stick to it. Critically examine every purchase you make and only buy what you need, not what you want. If you are overweight then there is considerable scope to even cut your food bill!
7. Buy this book - "Your Mortgage and How to Pay it off in Five Years - by someone who did it in three" by Anita Bell, and make this your Bible.
8. Write down your own personal debt consolidation strategy and evaluate on a monthly basis how you are doing.
9. Bite the bullet and suffer some short term pain. The only way to reduce your debts is to spend less than you earn!
10. Be willing to seek professional advice or counselling if you can't see any hope for your situation.
HOME LOAN CLUB for Free Debt Consolidation Quotes
Ask the Home Loan Club for a free, no obligation quote on a Home Loan, Refinancing, Debt Consolidation, Line of Credit etc. You can apply online!The Home loan Club is a unique organization that acts as a middleman with access to multiple brokers, maximizing the number and type of loans to select from. They have an intimate understanding of how the loan process works and the criteria used by the different lending institutions. This makes for a much smoother and faster loan application process, while guaranteeing you a better deal.
For your security, the Home Loan Club only use mortgage brokers who are members of the Mortgage Industry Association of Australia (MIAA).