Consolidating multiple personal debts into a single low interest rate loan product, such as a home loan, could be the answer to improving your cash flow and ultimately reducing your overall debt level.
Managing debt can be challenging. Life can be unpredictable and this is typically when debts can become troublesome. If you have ever had a month or two (maybe even a year or two) where unexpected costs left you overcommitted you will know that deferring that expense to a credit card or some other personal debt product might be the short term fix but can be the start of a new problem.
The real solution can be to consolidate those debts to regain control of your finances. Car loans, personal loans and credit cards tend to have high interest rates and are expected to be repaid over a short period of time. This combination can put an enormous strain on your household budget and in some cases lead to a situation where it consumes a significant portion of your income. Consolidating these personal debts into a loan product with low interest rate and long repayment term such as a home loan could be the answer to improving your cash flow and systematically work to reduce the debt level.
We’ve seen countless examples where the cash flow improvement from a debt consolidation means that an investment strategy for retirement can be implemented. McCarthy Money can help to determine if a consolidation strategy is appropriate and how the improved and simplified loan structure can be beneficial to you, your family, or your business.