If you have an existing home loan and you’re struggling with debt, refinancing your mortgage may be the perfect solution for you. Thousands of Australian’s each year face the fear of losing their livelihood to outstanding debts. A debt solutions specialist can assist you with making the right decision for dealing with your finances the smart way. Throughout the years, unexpected expenses often cause us to accumulate unwanted debt, especially when we are already straining to pay off a mortgage. Monthly mortgage repayments commonly take thousands of dollars from our regular income, often making it harder to save; this causes us to turn to personal loans and credit cards when unanticipated expenses arise.
More Control
Although credit cards and personal loans often seem like the only choice to manage expenses throughout our lives, they often result in unwanted stress and anxiety due to financial hardships. Mortgage refinancing involves using the equity on your home to repay other outstanding debts, leaving you with one, more manageable monthly repayment. All outstanding personal loans and credit card debts are combined into your existing mortgage to create a more controllable way to manage your debts.
More Freedom
Unlike other forms of debt solution, mortgage refinancing is often available to you even if you are self-employed, receive irregular income, have only been employed for a short period of time or have adverse credit history. Mortgage refinancing often has other benefits for home owners, including paying off your mortgage at a faster rate, having the option to extend your mortgage to leave you with a lower repayment each month and receiving a lower interest rate than what you are currently receiving on your mortgage. The easiest way to determine if you are eligible to refinance your mortgage is by talking to a debt solutions specialist. Although there are many benefits with mortgage refinancing, like any other financial decisions, make sure that you are always informed about what is happening. Discuss your mortgage refinance with a debt solutions specialist to ensure that your repayments have been decreased, not increased and that there really is a long term benefit for your financial future.
Get out of Debt Faster!
Refinancing your mortgage can help you to get out of debt faster because it often provides a substantially lower interest rate than that of credit cards and personal loans. Combining your other outstanding debts with your mortgage leaves you with one low interest rate, rather than several high interest rates, enabling you to pay off your debts faster. Paying less in interest rates each month often helps people to more effectively manage their finances for the long term, helping them to one day achieve financial freedom. Often, consolidating debt into mortgage is the perfect solution for people who may be struggling financially. By combining all outstanding personal loans and credit card debts into your more manageable loan, you are choosing to take action in paying off your debts the smart way.
Tara Blair writes for many leading personal finance news sites and blogs. In her experience, consolidating debt into mortgage repayments is a good choice for people struggling with uncontrollable interest. However, as always it is important to make an informed decision for your circumstances.