If you are thinking of consolidating your debts, asking a mortgage broker in Rockingham for information is a great place to start. The function of a mortgage broker is to gather some financial information from you and match you up with a lender whose terms are the most appropriate for your situation.
A consolidation loan is great for most people, but not everyone. You borrow money at a lower rate to pay off all of your debts with higher interest rates. There are two basic benefits. First, you get rid of high interest loans and save a lot of money on both interest and fees on your monthly repayments. Second, it is much more convenient to make one payment than multiple payments, especially if there are a lot of multiple payments to make.
When Should You Consider a Debt Consolidation Loan?
The short answer is “whenever you would profit from doing so.” The long answer is a bit more complicated. We recommend calling us for a consultation but you can do some of this at home if you like. Figure out all of the debts you are paying off, their interest rates and the total of your monthly payments.
Then, give us some basic information so that we can figure out what lenders will be the most appropriate for your situation. Using that information, we can give you a rough estimate of how much your new monthly payment would be. If it is less than what you are paying now, you should go ahead with the loan. If there is no significant difference, then you may not want to bother.
For most people, though, the savings are surprising.
The “ideal” situation for a debt consolidation loan is when you are struggling to keep up payments due to a lot of high-interest loans such as credit cards and store cards.
Call the Professionals
Call us at Smartline Rockingham for an obligation-free consult. Here’s our number: (08) 9527 1800.