Are you working in two jobs and work a few 80-hour weeks? If you are in financial stress because of something you are looking to achieve or you’ve done.
For most of us, paying off our debts as quickly as possible is the smartest solution strategy to get ahead financially. But does getting out of debt seem like an impossible task? Are you dealing with too many creditors and juggling too many repayments?
Debt consolidation might be the solution for your problems. At Solution Home Loans we can analyse your personal situation and assess the best options to assist you in reducing your debts, by consolidating them into one monthly repayment.
Tips to consider, when you want to pay off your loan faster
Getting the right home loan
Making sure that you have the right loan to suit your individual situation is important, and your Solution Home Loans Mortgage Broker will help you through the process choose a loan that you are likely to be able to pay off faster and suitable for your circumstance at that stage. There are many loan products that offer flexibility – for example professional packs, line of credit loans, or standard variable loans with a redraw facility, or an offset account.
Make Bi-Weekly Payments
It might seem obvious, but the best way to reduce your loan is to simply increase your repayments. The simplest and most effective way to do this is to increase your regular repayment amount.
Payments to your loan provider (Lender) every two weeks instead of the regular monthly payment. This will accomplish three things:
- Less interest will accumulate, because your payments will be applied more often.
- You will pay an extra payment, because there are 52 weeks in a year, which equals 26 yearly payments (or one extra).
- Doing this for the duration of the loan could shave off several months.
Make sure to discuss this with your SHL broker/loan provider before making bi-weekly payments, because you might be penalized for any extra payments or paying off the loan balance early.
Consolidating your debts
At Solution Home Loans we believe you can make significant savings in interest by consolidating all your loans eg personal, car and credit cards – under your home loan, where the interest is usually at a much lower rate. BUT remember, however, that putting short-term consumables under long-term finance can prove expensive in the long run.
Refinance Your Loan
This is one of the easiest ways to lower your payment, save interest, and pay off your loan in half the time (if you have good or bad credit, your SHL broker can assist you in refinancing). Many major banks, non-conforming lenders and credit unions are offering super-low interest rates on mortgage loans. So if you haven’t refinanced your home loan (or taken advantage of 0-percent interest on credit cards offers), now is the perfect time to do it.
For assistance in managing your finances, Contact Solution Home Loans Today to set an appointment.