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