Were increasingly becoming a society dependent on 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 connected with credit cards.
Our parents all lived inside a ’savings’ based society, where whenever they didn’t have the cash they didn’t buy it! Nowadays we have been continually being exposed to direct marketing and simple usage of credit. This has led to us transforming right into a ‘credit’ based society, where if we don’t have the money we just place it on credit and bother about covering it later!
Among my clients Daniel owned a house along with a mortgage and after reading in regards to the option of refinancing home loan his home loan, he decided to contact one of our fully qualified refinancing specialists to discover more about how refinancing his mortgage might manage to help him reduce his monthly repayments and pay less interest on what he owed on his credit cards.
Daniel was doing a repayment each and every month of $400 to the credit card issuers, having an interest rate on his credit cards of 16%.
We did some calculations for him and found the following:
He would pay $9,484 in interest before his credit cards were clear.
It might take five years and 9 months to pay off the cards if he didn’t make any further purchases with them.
Daniel wanted to reduce his monthly repayments to $300.
By mortgage refinancing his mortgage at 7% and consolidating his personal credit card debt in to the new mortgage it changed the figures quite dramatically:
He would pay only $4,153 in interest charges, lower than half the previous interest charges.
It might take six years and 2 months to repay his credit debt, slightly longer, however he would have a bonus of $100 to take each month during that time.
If Daniel had thought to continue making repayments of $400 then:
He would pay $2,895 in interest and;
It might take him only 4 years and 4 months to pay off the debt.
Every day we have been assisting clients like Daniel lower their plastic card debt.
Simply because that every situation is unique it’s important you let certainly 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 debt free, and before you know it you will be accumulating the wealth you have always desired.
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