Thinking about Refinance Your house Loan
We are increasingly becoming a society impacted by credit and in particular credit card debt. This can be a direct result of clever marketing campaigns, softening lending policies as well as the convenience associated with plastic cards.
Our parents all lived inside a ‘savings’ based society, where when they didn’t have the cash they didn’t buy it! Today we have been continually being exposed to direct marketing and simple use of credit. This has led to us transforming into a ‘credit’ based society, where if we don’t have the money we just place it on credit and stress about paying for it later!
Among my clients Daniel owned a house having a mortgage and looking at regarding the option of mortgage refinancing his home loan, he decided to contact one of our properly accredited refinancing specialists to learn more about how refinancing his mortgage might have the ability to help him reduce his monthly repayments and pay less interest on which he owed on his plastic cards.
Daniel was doing a repayment every single month of $400 to the credit card companies, with an interest rate on his plastic cards of 16%.
We did some calculations for him and found the examples below:
He would pay $9,484 in interest before his plastic cards were clear.
It would take 5 years and 9 months to pay off the cards if he didn’t make any more purchases with them.
Daniel wished to reduce his monthly repayments to $300.
By refinancing home loan his mortgage at 7% and consolidating his personal credit card debt to the new mortgage it changed the figures quite dramatically:
He would pay only $4,153 in interest charges, under half the previous interest charges.
It would take 6 years and 2 months to repay his personal credit card debt, slightly longer, however he would have an extra $100 to spend every month during the period.
If Daniel had thought we would continue making repayments of $400 then:
He would pay $2,895 in interest and;
It would take him only 4 years and 4 months to pay off the debt.
Daily we have been assisting clients like Daniel lower their bank card debt.
Due to the fact that each situation is unique it’s important you let one of our qualified refinancing specialists help assess your needs and in turn provide you with the available options.
Don’t look back on your new path to living free of debt, and before very long you’ll be accumulating the wealth that you have always desired.
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