With interest rates so low, people looking to refinance may like to consider taking the opportunity to consolidate other outstanding debts.
Some lenders have no limit on the number of debts that can be consolidated, provided they:
- Are not currently in arrears.
- Don’t have more than one missed payment in the last six months. (three months for credit cards)
- Haven’t had a closing balance over the limit more than once in the last six months (three months for credit cards).
Are up to a maximum Loan to Valuation Ratio (LVR) of 90% plus LMI
The benefits of doing this are generally:
- Reduced monthly admin charges (loan account fees etc)
- Lower interest rate for the consolidated debt
- Improved cashflow
- Less complicated finances
- Less stress
If you would like to improve your cashflow and pay off your debts faster, give John Kraws a call today on 0402 894 821