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How debt consolidation works
Although there are plenty of creative ways to get rid of your bills, there are only two tried, tested and effective ways to consolidate debt. The first is to take out a special personal consolidation loan, which can be effective for debts below $10,000. The second is to tap into your home equity.
The strength of security lenders have in property makes the interest rates on your mortgage lower than almost every other form of credit. If you have equity in your home or an investment property, using that equity by drawing against your property to pay off other debts is usually the most cost effective strategy. Not only does this reduce the hassle to one simple repayment, but can substantially reduce interest payments.
How Mates Rates helps
Unlike lenders, Mates Rates looks at hundreds of different options based on your needs. We have debt consolidation specialists that will not only help you get out of your current situation, but also help you create a solution to help you avoid the debt trap in the future. As with all of the mortgages we arrange, once the dust settles, we also help you pay it off with monthly mortgage rebates. (visit our downloads page for a fact sheet)
Your Mates Rates mortgage broker will work with you to develop a personal strategy which may involve your existing lender or switching to a better mortgage in the process. The Mates Rates team will also take the hassle out of the application process by managing communications and arranging the necessary paperwork. Debt consolidation can:
- Lower your overall monthly repayments and free up cash
- Make your money easier to manage
- Simplify multiple payments into one regular repayment
- Dramatically reduce the amount of interest that you pay
Once it's done
You will will have only one monthly repayment. You should consider canceling all or at least most of the cards and loans that got you into trouble in the first place. You should also keep your repayments as high as possible to make sure you get rid of all your debt as quickly as possible.
Click here for a confidential chat with a debt consolidation specialist.