If you are struggling with multiple debts, one smart way to simplify your finances is to bring all your loans together – it is known as “Debt Consolidation.”
If you structure your repayments in the right way, it could make managing your finances easier, help you save some money, and pay your home loan faster.
Compare what you Owe, Spend And Earn
It is essential to have a realistic view of how much you owe. It will help you analyse how much money is coming in and how much you are spending.
Create a budget and include:
This approach can help you identify where there may be room to save a little extra and add to your repayments.
For Budget planning, you can use our Budget Planner calculator.
Consolidate Into Your Home Loan
One of the most significant benefits of consolidating into your home loan is:
You could even put what you save on interest towards additional home loan repayments. Use our Loan Repayment calculator to calculate repayments.
However, home loans with longer loan terms might end up paying more interest.
Have a quick chat with our lending specialists to understand how much time and money you could save by making extra mortgage repayments.
Repay Full Amount Outstanding Instead Minimum Amount Owing
When you are making repayments, you typically get two options:
While it might be attractive only to pay the minimum amount owing, keep in mind it will still incur interest on outstanding, and you could end up owing more money.
We can help you assess your financial situation and advise you with the most suitable solution.
Shop Around For Better Deal
Added fees and high-interest rates can certainly affect how much you pay back on top of the base amount (the principal amount you owe).
If you have a credit card or home loan, you could save money with the “Refinancing” option.
Our lending specialist can help you compare various lending institutions that can offer more suitable repayment conditions and lower interest rates.