Debt Consolidation
Yes, it is possible to reduce your monthly loan repayments, save huge amounts of money in interest and pay off your debts in a shorter time frame.
Consolidate your Debts ......
In the true example above, I have indicated a typical client's scenario where they had multiple debts. Overall the client had total debts of $300,500 with interest rates ranging from Home loan @ 7.25% to a Car Loan @ 10.5%. Monthly repayments were $2,756 and the interest the client would have paid could have amounted to $335,487.
By consolidating all the loans, this client benefited by having a single monthly repayment plus there were some other noticeable benefits. This client had the option of reducing their overall monthly prepayments to $2,172 which gave them a living surplus buffer of an additional $584 per month. Alternately, this client has the option to maintain their previous monthly repayments which would then reduce their total loan term including their home loan term, to be debt free in 14 years and 9 months rather than the 25 years they previously had. More importantly, if the client maintains this payment regime, they will save a whopping $144,000 in interest.
I can't consolidate my debts because I am in a Fixed Loan.
You can never be locked into any loan by any lender! (This means that irrespective of being in a fixed rate loan or a variable rate loan, you can leave that lender by paying their indicated break fee. It is often the case that break fees are less than the benefits received by switching to a better loan product.)
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