3 Signs it’s Time to Refinance and Consolidate Debt
Have you got a buy now/worry later mentality? An AMP NATSEM Income and Wealth Report shows that the majority of Australians do, as average household debt was almost double that of average household disposable income last year.
Rolling your debt into one, could be the key to paying less interest and simplifying your repayments. Here are three signs that it’s time for you to start considering refinancing your home loan.
Your credit card bill’s getting out of control
Do you find it a little too easy to slap your plastic on the counter every time you spend money? You’re not alone – MoneySmart puts the average Australian credit card debt at over $4,200. If your credit card debt is above average, or your repayments are at the edge of your means, then you should consider consolidating it into your home loan.
Not only will your interest rates be lower, but you’ll also find that your bills are just a little harder to ignore. With your credit card, late payment means a few letters in the mail, interest payments and a small fine – but with your home loan it could mean losing your property.
You can’t keep track of your bills
If your letterbox resembles the Dursley’s fireplace when bills come in, then that’s a definite sign that it’s time to consolidate your debts. Having several debts to service is never a good thing, as you’ll have more payments to remember, and therefore more payments to forget.
Roll your debts into one by refinancing and you’ll have one easily manageable loan to repay. That means one bill in the letterbox, one due date to remember and several less things to worry about.
You’re paying interest out the wazoo
Canstar puts the average Australian credit card interest rate at just under 17 per cent. Assuming your credit card debt is at MoneySmart’s national average of $4,200, you’ll pay at least $700 in interest on your credit card every year.
Other debtors may have even higher rates, so it’s in your best interest to have a close look at your interest payments and devise a way that you can pay less. For advice on refinancing and debt consolidation, get in touch with us today. With the help of an industry professional, your interest payments will be less and so will your worries!