29% of Australian Households are Struggling to Pay their Mortgage

Close to 1 million Australians are experiencing mortgage stress with 921,000 households feeling the pressure in December 2017. Findings released by Digital Finance Analytics revealed 29% of Australian Households are struggling to make their mortgage repayments as their net incomes are not enough to cover ongoing costs. The report also showed 24,000 of those feeling under pressure were experiencing severe stress and at risk of defaulting or losing their homes.

These figures have jumped nearly 20% in the last 6 months showing a potential increase in home loan defaults in 2018. In fact, it is believed 54,000 households will be at risk of 30-day debt defaults over the next 12 months. If you are struggling to make your mortgage repayments, talk to us about your debt repayment strategy.

Mortgage stress is defined as when a household’s income doesn’t cover its outgoings, including mortgage repayments.

The Cause of Mortgage Stress in Australia

The rise in household debt stress can be contributed to a number of economic factors:

  • Larger mortgages
  • Rising costs of living
  • Underemployment
  • Stagnant wage growth
  • Likelihood of future rate rises

With mortgage repayments putting pressure on household incomes, people are turning to credit cards and cash loans to pay bills and other living expenses. This creates a vicious debt spiral which can be incredibly difficult to escape. People then prioritise paying off their home loans and neglect to pay their unsecured debts such as credit cards and personal loans.

These late payments then lead to defaults on their credit file, making it even more difficult to get lines of credit and loans. Eventually, people need to consider Part 9 Debt Agreements or even Bankruptcy to deal with these debts – putting them at risk of losing their homes, regardless of their repayments.

Is-Your-Business-In-Financial-Distress

How to Get Your Mortgage Stress Back Under Control

Credit cards and personal loans can often fetch interest rates in excess of 20%. With mortgage interest rates at an all-time low, it seems logical to consolidate unmanageable debts into the home loan through a mortgage refinance. By refinancing your mortgage, you can access the equity in your home loan to pay off your unsecured debts in a debt settlement – eliminating your unsecured debts and leaving you with one easy-to-manage repayment.

The major banks, however, are making it increasingly difficult for anyone struggling with mortgage stress to refinance their loan. Specialty lenders such as Revive Financial can offer assistance where the big banks can’t.

By negotiating your unsecured debts with your creditors, they can reduce the amount of debt you owe to a level that could be consolidated into your mortgage. This process improves your financial position before consolidating your debt, making it easier for you to stay on top of your mortgage repayments.

Revive Financial Can Help You

Revive Financial provides a suite of financial services specifically designed to help you consolidate your debts, reduce your repayments and improve your financial position. Let us help you break down the barriers today for a successful financial future tomorrow.

Revive Financial specialises in finding a solution for those who are unable to meet the lending criteria of traditional lenders. Whether you have too much debt or a poor credit history we have a solution for you. If you have been declined a loan through a traditional lender, we can certainly help.

Debtstroyer Home Loan can assist by reducing your debt, offering you a consolidation home loan and allowing you to breathe easy once again.

Reduce Your Debt

Revive Financial will negotiate with your creditors to reduce your unsecured debt amount. You may end up only owning a fraction of each dollar, drastically reducing your unsecured debt amount.

Mortgage Refinance

With you new unsecured debt amount, Revive Financial is able to consolidate your debts into your mortgage, leaving you with one easy-to-manage debt repayment.

Breathe Easy

With your new consolidated Debtstroyer Home Loan, you can breathe easy again. The harassing creditor calls would have stopped and you are left with one, reduced affordable repayment.

For more information on bad credit home loans and how we can help, check out our bad credit home loan page here.

Topics: Home Loans, Personal Debt

How Can We Assist You Today?

Business Debt Icon Business
Personal Debt Icon Personal
Please select an assistance option to continue.

Types Of Unsecured Debts

Credit Card Icon Credit/Store Cards
Personal Loan Icon Personal Loan
Pay Day Loan Icon Pay Day Loan
Tax Debt Icon Tax Debt
Disconnected Utilities Icon Utility Bill
Other Debts Icon Other
Please select at least one type of unsecured debt.

Your Business Structure

Sole Trader Icon Sole Trader
Partnership Icon Partnership
Company Icon Pty Ltd Company
Tax Debt Icon Trust
Please select at business structure to continue.

Unsecured Debt Amount

$8,000
$1,000
$100,000+

Business Debt Amount

$100,000
$10,000
$1,000,000+

Take Back Control Today!

First Name

Last Name

Email

Phone Number

Phone number must be 10-digits long and begin with a 0. (e.g. 04 1234 5678)

Post Code

Post code must be 4-digits long (e.g. 4567)

Some of your details appear incorrect.
Please update the highlighted fields and re-submit.

Congratulations

You’ve taken the first step to steer your business back to viability

Let’s keep the momentum going, take the second step by linking your Xero account now.

Congratulations

You've taken the first step to becoming debt free

Let's keep the momentum going, take the second step now and complete the assessment form.

By submitting this form you acknowledge that you have read and accept our Privacy Policy