Debt Consolidation - Time to Review Your Banking
Debt consolidation when the interest rate is low
In December 2008, the Reserve Bank of Australia set the official interest rate to its lowest level in over 6 years.
For those of us who carry multiple debt commitments it is a very good news and it is time to review our banking arrangements and proceed with debt consolidation.
To start with just take look at your various debts. In many cases you will find that they are quite different from each other.
To decide on debt consolidation you will need to check:
- the ability to accelerate repayments
- the life of the loan
- are you repaying the principal of the loan or only the interest costs
- interest rates
Debt consolidation - typical case
Martin H. has: investment loan with 8%, overdraft rate is 10% and credit card debt with 16%. When Bad Credit Freedom analysed these forms of debt we found that Martin's cost of borrowings escalates fast.
Because of this mix of investment and credit card debt Martin was paying up to $5,000 annually more than he had to.
Bad Credit Freedom suggested to improve debt position through debt consolidation. He reduced the credit card debt by merging it into a larger single debt. That solution changed his debt mix to the optimal level.
Debt consolidation is establishing the right mix between debt cost, term of repayment and cash flow availability.
Contact us today for assistance with debt consolidation.
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Debt Consolidation - Time to Review Your Banking
Debt consolidation is establishing the right mix between debt cost, term of repayment and cash flow availability. if you have multiple debt commitments, they can be merged into single bigger debt with optimal rate. Bad Credit Freedom will help you with proper debt consolidation.
