Reducing Your Credit Card Debt Through Your Mortgage

Mortgage Refinance is an excellent way to help reduce credit card debt.

If you are currently paying the minimum balance each month on your credit cards then consolidating your credit cards into your mortgage may be a way to help you pay less interest.

Consolidating your credit card debt into your mortgage may also reduce your monthly repayments if you are struggling to meet them each month.

For example if you owed $8,000 on credit cards with interest rates of 16% and were paying $300 each month in repayments, the following would be true:

• You would pay $1,952 in interest (almost a quarter of the whole balance)
• It would take you almost three years to pay off the credit cards, including interest charges.

Consider these two scenarios:

Scenario One - lower interest rate through mortgage refinance

If you rolled this credit card debt into a mortgage at (for example) 7.5%, the following would be the case if you continued the $300 repayments each month:

• You would only pay $779 in interest, saving $1,173.
• You would pay the balance from the credit cards off in two and a half years rather than three.

Scenario Two - lower monthly repayment through mortgage refinance

Rolling this credit card debt into the same mortgage as in Scenario One but paying off only $250 per month instead of $300, the following would be true:

• You would pay $954 in interest, saving $998.
• You would pay the balance of the credit cards off in three years, however;
• Your monthly repayment is $50 less and therefore you would have had an extra $1,800 to spend over the course of the three years.

These are examples, however, it does show how mortgage refinance can assist you in reducing your credit card debt.

Due to the fact that every situation is unique it’s important you let Mortgage Relief™ help assess your situation and in turn provide you with the available options.

To find out more information, call us on 1300 789 014.

All information provided by our staff comes with no obligation to allow you to further research the Mortgage Relief™ options available to you.

(The above example is for demonstrative purposes only)