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Is your debt getting a little out of control? We have a look at three signs that it could be time to consolidate your debt into one convenient loan
Everyone faces money problems at some point in their lives, and we at Yellow Brick Road know how stressful it can be. But if you're getting into hot water, all it could take is some sound financial advice and a smart plan to get back on track.
When it comes to debt this could mean rolling all your loans and bills into your mortgage, so that you can easily get on top of them.To help you find the way forward, here are three signs that refinancing could be right for you.
You're paying off multiple debts
There are few things more stressful than trying to manage a half dozen debts, and receiving late payment notices in the mail every week. The average Australian obviously agrees, as almost half of respondents to the most recent Australian Psychology Society survey said that financial issues were the biggest causes of stress in their lives.
Simplifying your debts by rolling them all into your mortgage will help take the fuss out of repaying them. You won't be juggling several repayments, at different rates and with different due dates. Instead you'll be paying one simple and easily understandable bill at the same time every month.
The credit card bill's gotten a little out of control
We're all guilty of putting a little too much on the plastic from time to time. In fact, MoneySmart estimates that Australians owe over $32 billion in credit card debt - or an average of $4,357 per card holder.
Canstar's data puts the average credit card interest rate at around 17 per cent, but that they can get as high as 23.5 per cent. If you rolled a $5,000 credit card debt at 17 per cent, into a home loan with a rate of 5 per cent, you could save as much as $800 in interest in one year!
You're getting hit with extra charges
Australians owe over $32 billion in credit card debt - or an average of $4,357 per card holder.
Personal loans, credit cards and hire purchase schemes are often guilty of hitting their customers with a raft of extra charges that can come as an un-pleasant surprise. If you've recently opened bills from your lenders and spotted charges that seemingly came out of nowhere, now could be the time to refinance.
If any of these scenarios struck a cord with you, get in touch with your local Yellow Brick Road representative today. With the help of expert advice tailored to your situation, your debts will be easier to manage and your financial future will instantly start to look a little brighter.