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Are You Having Trouble Managing Multiple Debts?

By consolidating your debt, you can take some pressure off your monthly finances.

Here is a quick experiment…  

Go pick up three balls and try and juggle them. Most people, besides those who ran away to join a circus, will likely drop at least one of them within a few tosses. Now put two of the balls aside and throw the remaining up and down with one or both hands… that is much easier to manage, right? 

Well, this is not too dissimilar to the concept of debt consolidation. If you have more than one loan – for example, a credit card, a car loan and/or a personal loan – you can reduce the stress of juggling multiple debts, payment dates and interest rates by rolling them into one easy-to-manage loan.

There are Other Benefits Too

One common debt consolidation method is to take out a new personal loan and use the funds to pay off your other existing debts.

If the interest rate on the new personal loan is lower than the interest rate on your existing debts (for example, a credit card with a 17.99% interest rate) this can help your pay less interest each month and avoid the nasty late payment fees that come with these kinds of cards.

By rolling all your debts into one, you can get a clearer timeline of when you can be debt-free.

Debt consolidation can also make it easier for you to manage your household budget, as you only need to factor in repayments from one debt per month instead of many.  

Refinancing your Home Loan for Debt Consolidation 

Another method used for debt consolidation is rolling it into a refinanced home loan because mortgages offer comparatively low interest rates.

If you are struggling with multiple debts right now, consolidating your debts into your home loan will, in most cases, reduce your overall monthly repayments.  

But there is a big word of warning… 

Whilst this option can reduce your monthly repayments now, debt consolidation through your mortgage can turn a short-term debt (such as a personal loan) into much longer-term debt.

So, unless you aim to make a lot of extra repayments as soon as possible, you could end up paying significantly more interest than you would have otherwise. One way to address this issue is to create a loan split for the debt consolidation, giving you the ability to pay off all the short-term debts within a few years rather than for example over a 25-year home loan period. 

If you would like to explore your debt consolidation or refinancing options, then get in touch with Zippy Financial today, and we can help you look at ways to take off some financial pressure.  

Whatever your circumstances, we are here to support you however we can!

Frequently Asked Questions

What is Debt Consolidation?

Debt consolidation is the process of combining multiple debts into a single loan, making it easier to manage repayments and potentially saving you money on interest rates.

How Can Debt Consolidation Help Me?

By consolidating your debts into a single loan with a lower interest rate, you can reduce your monthly payments and avoid late fees associated with high-interest debts like credit cards.

What are the Benefits of Using a Personal Loan for Debt Consolidation?

Using a personal loan for debt consolidation can provide you with a clearer timeline for becoming debt-free. It can also simplify your household budget, as you’ll only need to make one payment per month.

Can I Use My Home Loan for Debt Consolidation?

Yes, you can refinance your home loan to include your other debts. This is often advantageous because home loans typically have lower interest rates.

What are the Risks of Using a Home Loan for Debt Consolidation?

While using a home loan can reduce your monthly payments, it can turn short-term debts into long-term debts. This means you could end up paying more interest over time unless you make extra repayments.

How Can Zippy Financial Help Me with Debt Consolidation?

Zippy Financial offers tailored financial solutions to help you consolidate your debt and achieve financial peace of mind.

Get in Touch

Get in touch with Zippy Financial today for tailored financial solutions. Consolidate your debt and simplify your finances. Say goodbye to juggling multiple debts and hello to financial peace of mind. Contact us now! 

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business. 

About the Author:   

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

Connect with Louisa on Linkedin.   

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 

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The pandemic has reshaped numerous aspects of our lives, not least of which is the automotive market. Car prices have seen a significant surge since the pandemic started, affecting both new and used vehicles. Understanding this trend is crucial for potential buyers navigating the current market, and a comprehensive car price guide can provide valuable insights into car pricing dynamics. 

Current Trends in Car Pricing 

The automotive market has witnessed unprecedented trends in recent years. New car prices have skyrocketed, with some models seeing increases as high as 37%. The used car market is not far behind, with prices rising by up to 50% according to some indices. These trends reflect a complex interplay of supply and demand, influenced by global economic shifts and local market conditions.

Factors Influencing the Rise in Car Prices

Several key factors have contributed to the rise in car prices since the pandemic began: 

The Impact on Consumers

The surge in car prices has had a profound impact on consumers. Many are facing challenges in finding affordable vehicles, leading to changes in buying behavior. The financial implications of these market conditions are significant, prompting consumers to explore alternative financing options or delay purchases until the market stabilizes.

Financing Options in the Current Market

Navigating the financing landscape is more important than ever for prospective car buyers. With the average car loan size increasing, understanding the terms, interest rates, and total cost of ownership is crucial. Financial institutions and lenders, along with strategic financial planning, play a pivotal role in shaping these options, and consumers must be diligent in exploring and negotiating the best possible terms.

Strategies for Prospective Car Buyers

In this volatile market, prospective car buyers need to employ strategic approaches: 

The Future Outlook of the Automotive Market

While the future remains uncertain, experts predict that car prices may stabilize as supply chains recover and production meets demand. However, potential buyers should remain vigilant, keeping an eye on market trends and economic indicators that could influence car pricing in the future.

The surge in car prices since the pandemic started has posed challenges and opportunities for consumers. By staying informed, employing strategic buying strategies, understanding the financing landscape, and seeking advice from a financial broker, prospective buyers can navigate this complex market more effectively. Additionally, exploring various options for vehicle finance is essential to make informed decisions aligned with individual financial goals.

FAQ

A: According to an ABC article quoting pricemycar.com.au, the price of new cars has gone up as much as 25% since before the pandemic. The average price of a new car is up 7.6% since pre-pandemic times.

A: The price increase varies a lot from manufacturer to manufacturer. For example, Land Rover has seen a 9.01% increase, Audi 9.59%, and BMW 8.42%.

A: Used car prices have risen even more than new cars, with an increase of 50% based on Datium Insight’s price index. Another estimate suggests a 25 to 35% increase in recent years.

A: Research shows that 52% of car buyers have taken out a loan to buy a vehicle in the past decade, with the average loan size being $25,000. Most car loan providers offer a maximum term of up to 7 years.

A: If you are purchasing the vehicle for your business, the Federal Government’s temporary full expensing scheme can help improve your business’s cash flow.


Phone: 1300 855 022
Email: clientservices@zippyfinancial.com.au

Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.

About the Author:

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilizes her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.

Connect with Louisa on Linkedin.

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.

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Comparison Rate calculated on a secured loan amount of $150,000 for a term of 25 years. WARNING: This Comparison Rate is true only for the example given and may not include all fees and charges. Different terms, fees and other loan amounts might result in a different Comparison Rate. Fees and Charges Apply. Terms and Conditions are available on request.