My monthly payments are too high. What can I do to relieve the pressure?

With interest rates expected to continue to rise until the end of 2022 you might be wondering how you are going to manage the new monthly outlay on top of your other monthly repayments. If you have other debts now might be the time to consider consolidating these into one repayment using the equity in your property.

Say, for example, your household has two different car loans with outstanding balances of $30,000 and $20,000 each as well as credit card that was used to buy furniture and is now no longer interest free. Each of these debts will likely have a different interest rate, repayment amount and due date, making it challenging to stay on top of them all. The credit card interest rate particularly is likely to be at least 3-5 times higher than your home loan.

To help simplify your financial situation, you can consolidate all these debts into one loan. This allows you to have just one set of recurring repayments to make over a set term, with a single interest rate. There is also the potential to pay the debt back faster using other loan features like additional repayments and/or offset accounts.

We will discuss with you the benefits and disadvantages of debt consolidation before making a recommendation. This will need to take into consideration your overall financial position. We are required by law to act in your best interests so why not reach out and find out if this right for you.

If you'd like to explore debt consolidation please speak to Sid or Rebecca on 02 9742 3553 or by email to rebecca@sattouts.com.au