If you’re unsure about debt consolidation, Gold Coast finance specialists Empire Financial Group Australia can help you find the right restructuring options to help you achieve your financial goals.
Debt consolidation can help you eliminate those high interest credit cards or unsecured loans into one simple loan. With only one loan to think about each month, you have the opportunity to streamline your finances and potentially reduce your monthly repayments at the same time.
Benefits of Restructuring Your Finances
It’s common for many people to be making monthly repayments on a couple of credit cards, personal loans, or store cards. When you add up the total amount you pay each month on repayments, it can be staggering.
There’s also the worry of how much interest you’re paying on each of your outstanding balances. Many credit cards and store cards charge interest rates of 19%, with some charging as much as 25% on any balances you haven’t paid off yet.
By comparison, consolidating your outstanding debts into one convenient loan allows you to reduce the interest you pay on your debts. In most cases, you should also find that your monthly repayments are reduced, so you have more money left in your pocket at the end of each month.
There’s also the benefit of only having one loan to think about repaying, instead of trying to keep up with several. If your goal is to pay off your debts, you’ll find it much easier to achieve that goal if you only have one loan balance to focus on.
What’s more, a debt consolidation loan is calculated using what’s known as ‘principle and interest’ payments. This means each repayment you make reduces the amount you owe, so you’re automatically paying off your debts with each passing payment.
Using Debt Consolidation to Your Advantage
Arranging a debt consolidation on the Gold Coast offers several advantages. Aside from paying far less interest on your outstanding debts, you also have the opportunity to repay your loans at a much faster rate.
For example, by consolidating your credit cards, store cards or personal loans, you could end up paying much less in repayments each month. You could choose to use those funds to pay for other living expenses, if you wish.
Alternatively, if you’re serious about paying off your balances as quickly as possible, you have the opportunity to continue paying the same amount as you were on your combined debts previously. The result is that you should pay off your balances in a much shorter time than you otherwise would.
Another potential advantage debt consolidation offers you is the possibility of increasing your borrowing capacity. If you’re hoping to apply for a home loan in the near future, your lender will calculate the amount you can borrow based on your outstanding credit card limits and your personal loan outstanding balances.
When you restructure your finances with a debt consolidation loan, your monthly repayments are reduced. The result is that you could find lenders are willing to let you borrow more on your home loan.
If you want to streamline your debts, discuss your options for debt consolidation with Gold Coast finance specialists at EFGA. We’ll help you restructure your finances so you can achieve your personal financial goals.