Debt Consolidation and Cash Out Home Loans
Well-managed debt can help achieve financial and personal goals, such as home ownership or a new car.
However, sometimes with the accumulation of multiple debts, things can get out of control. If not carefully considered, that next purchase or taking out that next loan, buy now, pay later facility or credit card, can tip your finances over the edge.
If this sounds familiar, there are actions that can be taken to rein in this debt and bring your finances back under control. Debt consolidation can often be a sensible outcome.
Roll your loans into one home loan and save!
Depending on the equity in your property, a consolidation of all debts into your home loan may well be the best outcome. It will generally reduce the average interest rate of all current debts and reduce the overall monthly repayment. It will simplify a borrower’s financial affairs into one manageable loan repayment.
Home loan interest rates are generally much lower than the interest rates on credit cards or personal loans. So by rolling these debts into your home loan, the total amount that you have to repay each month will reduce, sometimes quite substantially.
How do I consolidate debt – how does it work?
- Gather the most recent statements on all debts.
- Determine the amount owed with each debt.
- Note the monthly repayments & the interest rate on each debt.
- Determine if there are any break costs on a fixed rate loan (if applicable).
Now that you know where you stand and how much debt you have, it’s time to contact Paul to help you with the next steps. Debt consolidation options:
- Combine your debt into an easy to manage, new home loan.
- Consolidate debt with a home loan top-up.
Home Loan top-up
Applying for a home loan top-up can also be a great way to consolidate your debt.
By consolidating your finances under one home loan you can potentially:
- Take advantage of a lower home loan rate, when compared to other lending options like personal loans.
- Reduce the overall amount you pay each month across all your debts
- Simplify your finances with only one monthly repayment.
If you are finding your debt difficult to manage, the earlier you act, the greater the chance of a good outcome.
Cash Out Home Loans
- Large, unexpected bills.
- Personal debts to a non-financial institution, e.g. a relative, etc.
- To purchase a motor vehicle, caravan or boat.
- To invest in shares, managed funds or some other type of investment.
Depending on the amount of funds required, lenders will quite often approve loans for these purposes without too much verification.
Paul can offer guidance and advise on the verifications needed for these types of loans.