Why Refinance?

We are increasingly becoming a society dependent on credit and in particular credit cards. Clever marketing, liberal lending policies and the convenience associated with credit cards has seen consumers continue to increase their exposure to credit card debt.

Robert Macey owed $17,875 on his five credit cards.

He owned a house with a mortgage and after reading about mortgage refinance decided to contact a consultant to find out more about how mortgage refinance might be able to help him reduce his monthly repayments and pay less interest on what he owed on his credit cards.

Robert was making a monthly repayment of about $400 a month to the credit card companies with an interest rate on his cards of 16%.

He found out:

• He would pay $9,484 in interest before his credit cards were clear.
• It would take 5 years and 9 months to pay off the cards if he didn't make any more purchases with them.

Robert wanted to reduce his monthly repayments to $300.

By refinancing his mortgage at 7% and consolidating his credit card debt into the new mortgage he found out that the figures changed quite dramatically:

• He would pay only $4,153 in interest charges, less than half the previous interest charges.
• It would take 6 years and 2 months to repay his credit card debt, slightly longer, however he would have an extra $100 to spend each month during that time.

If Robert had decided to continue making repayments of $400 then:

• He would pay $2,895 in interest and;
• It would take him only 4 years and 4 months to pay off the debt.

Just like Robert, mortgage refinance can help many Australians with a residential property lower their 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)