Debt Consolidation - The Solution To All Your Debt Problems?
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It’s so easy to get caught up in our day to day lives that we can get caught out using credit cards too much. Before long we are at the limit of our credit and the repayments are sometimes just too much to handle. Meeting the monthly repayments can put us in a very difficult situation.
The interest rate charged by Credit card lenders is way too high. If you have a few cards at their limit, trouble is just around the corner, because you simply cannot make the payments.
You can overcome this problem by refinancing your debts into one low interest rate loan. What we are talking about here is a debt consolidation process. It is a technique used successfully by many people to ease the financial strain.
Debt consolidation refi will allow you to replace many creditors with just one loan. It makes it easier to manage because you only have to make one lower monthly repayment
What is debt consolidation refinance?
Put simply, it is a result-oriented program designed to help the customers reduce the required monthly repayment. The debt consolidation process helps people to pay off the debt at a much lower interest rate and, with careful planning, pay the debt off faster, saving potentially thousands along the way.
With this approach you can become debt free in a shorter time without the stress of not being able to afford the old payments. You can live within your monthly budget and relieve all the stress.
What is the process of applying for a consolidation loan?
There are hundreds of options to choose from. Just contact a Mortgage Broker and they will check it for you and give you an overview of what is available and suitable for you in your particular circumstances. The whole process should not take you any longer than about 24 hours. It will be up to you to choose from the options presented to you, but if you have done a budget plan, you will find this process quite easy and stress free.
One final point is that it is always helpful to have a prepared budget before you look at the choices of a consolidation refi. We must all live within our means, and having a monthly budget gives us the guide we need to determine our spending. With the budget in mind we will be able to choose the right consolidation loan with confidence.
Interest Rates to Remain Steady
With petrol prices coming down there is lower inflation so interest rates should remain steady. So say the analysts of the latest economic data.reported in the press today.
Inflation actually fell by 0.1% during the quarter, the first fall in eight years.
The most recent concerns had been bananas and petrol but evene when these were taken out of the equation, inflation rose by just 0.5%.
Some experts are even tipping a rate fall.
“In our view, yes, interest rates have peaked because inflation has peaked,” Commsec’s Craig James said. (The Herald)
The National Australia Bank’s Alan Oster suggested homeowners could sit back, relax and watch for up to a year.
With underlying inflation of around 2.9% it is within the Reserve Bank’s target range, allaying concern that another rate rise could be imminent.
The median price of a Melbourne house was $385,000 — cheaper than Brisbane, Perth, Sydney and Canberra.
Home Loans - How to Save $93,635 on a $200,000 Loan
As someone once said ‘It’s not rocket science’.
I guess it is a little hard to believe, but it really is true.
But, would you be interested if I told you that simply by choosing a different loan, you could save an extra $16,836?
Of course you would, but before I get to that I’m going to let you in on many more secrets and tactics or strategies, whatever you want to call them, that will help you choose the best home loan for your individual circumstances.
I’ve put together an ebook, which I will give you completely free of charge, which will show you everything you need to know to get the best deal.
Here are some of things covered in the ebook:
• Why the “Best Home Loan Award” is not necessarily the best.
• Why the lowest interest rate loan may cost you more.
• Why the lowest repayment loan may cost you more.
• Why the standard variable rate is not really the standard.
• How you can cut years off your loan and save thousands in repayments.
• When to use a line of credit.
• When an Interest Only loan is the best choice.
• How to maximise your borrowing capacity.
• How ‘Lo Doc’ loans work.
• What Banks really think of Self Employed borrowers.
• How do people borrow every year and build a seemingly endless empire of investment properties.
• How to save on application fees.
• When are Professional Packages really a good choice.
• What is the process used by Banks when assessing your application.
• What is Mortgage Insurance and how does it affect you.
All in all, it’s the kind of information that will allow you to confidently deal with any bank or broker you choose. You will discover what questions to ask to reduce your upfront expenses and what criteria to use to decide what the best loan really is.
Let me know if you would like a copy and I’ll send it on to you. I have had a few requests from the US but, please remember it only applies to Australia.
To leave a message, just click on the title of this article, and you will find a form at the bottom of the page.
Home Loans – How to Get the Best
One of the best ways to find the home loan tht is just right for you, is to look at the process a lender goes through when assessing your application for a home loan.
When a lender looks at an application for a home loan, or any finance for that matter, there are several vital things that must be present before the application can receive due consideration.
The best way to think of it is to put yourself into the lender’s mind.
Say someone who you don’t know asks you to lend them some money. What would you want to know about them? Like you, an experienced lender would want to know:
• What do they want the money for?
• What is the thing they are borrowing for worth?
• How much do they want?
• What is their employment history?
• How long have they been in their current job?
• How much do they earn?
• What is their borrowing history like?
• Are they able to save money?
• What is their family situation?
How would you treat someone who:
• Wants to borrow $300,000 for a new home.
• Has been in their current job for 6 weeks.
• Has no savings.
• Married with 3 children. Wife not working but getting $190 per fortnight Centrelink payments.
• Earning $50,000 a year.
• Is currently paying rent of $450 per week.
Before you make your mind up remember that the expected loan repayments on this proposed loan will be about $510 per week.
It’s a difficult decision to make, but with $300,000 at stake, you’d better be careful!
The assessor in a Bank will be expected to process an application like this in quick time, about 20 minutes or less during peak times. The assessor’s task is made a bit easier because he has history to rely on. By this I mean loan history. The bank will have data from thousands of loans and this experience tells them many things about almost every scenario that comes across their desks.
The above scenario is simple; the loan will be declined because the customers are not earning sufficient income.
There are a myriad number of scenarios which I will be covering regularly. If you have a particular question, just reply to this post or call me on 1300 133 193 and ask for Michael.