Finance focus
3 Ways your broker can help you deal with debts

Juggling several debts can be stressful. If you’re struggling to keep on top of your debts or you simply want to save money on interest, your mortgage broker can help you solve the problem and get some peace of mind. Here are 3 ways your mortgage broker can help you deal with your debts and remain in control. 

1) Your broker can help you consolidate your debt 

With debt consolidation, the idea is you take out a new low-interest loan and use it to pay off all your high-interest debts. Below are a couple of recommended debt consolidation options.

Option 1: Refinance your home loan

In this scenario, you would refinance your mortgage and access some of your equity to pay off your debts.

Pros

Cons

Option 2: Take out a personal loan

You could consolidate by taking out a personal loan with a competitive interest rate and using it to pay off all your other debts. 

Pros

Cons

2) Compare interest rates on all of your loans

Your mortgage broker can help you find competitive interest rates on other kinds of loans, besides your home loan. They can compare interest rates on your personal loan and your car loan, all through a   wide variety of lenders.

To help you manage your debts, you may be able to refinance your existing loans to a more competitive interest rate, or a longer loan term that reduces the size of your repayments. Bottom line is you have nothing to lose and everything to gain by checking in with a mortgage broker.

3) Create a budget and savings plan

Having a solid understanding of your income and expenses will help you remain in control of your finances. Your mortgage broker can help you set up a budget to pay off your debts and create a savings plan to reach your goals. They’ll also give you tips, like how eliminating credit cards could save you money, or how budgeting apps work.

The last thing you want is for your debt to spiral out of control. Your mortgage broker, can explain whether debt consolidation is financially worthwhile, compare the market to find you the most competitive interest rates and help you find ways to budget and save. Please get in touch today.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.  Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

 

 

 

 

 


The information provided is general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. This article does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.