Posted by Revive Financial on Oct 15, 2012 5:39:00 PM

Why Refinancing Debt Can Assist Your Situation

Refinancing Debt is a simple way to allow yourself more time and cashflow to get on top of your finances. When debt becomes difficult to pay, it can put a lot of stress on your family and life. Refinancing Debt means your repayments become more manageable, increasing your cash flow and relieving the pressure. Some other benefits of refinancing debt include:

  • Reduce monthly repayments by securing a lower interest rate.
  • Consolidate other loans such as car, personal or credit card debt into one easy repayment.
  • Finance renovations or extensions on their home by tapping into the equity
  • Get better features included in your mortgage such as a redraw facility or the ability to offset accounts.

Fees, Charges and Interest Rates When Refinancing Debt

When refinancing debt properly, you must make sure your new loan will improve your financial situation, not make it worse. One of the biggest considerations you need to make when refinancing debt is whether your potential savings will outweigh the interest, fees and charges involved with refinancing debt. If you are refinancing debt through a new lender, your previous lender may have discharge fees, deferred establishment fees, break costs and loan or legal fees.

Your new lender may also charge home loan application fees, valuation fees, settlement fees, registration of mortgage fees, stamp duty and mortgage insurance. Every lender is different and some fees depend on the loan amount, such as the mortgage insurance. When discussing refinancing debt with your potential lenders, ask for a break-down of all the fees involved so you are well aware of what it will cost you to switch.

Things to Consider When Refinancing Debt

As well as weighing up the fees, charges and interest, there are a few other things you need to think about before refinancing debt. Is your life about to change in a dramatic way? Are you expecting a child, falling ill or looking for a new job? Will refinancing your mortgage assist you in these endeavors by saving you more money or are you trying to bite off more than you can chew?

Before you give up on your current loan, look at the extra features. Is it worth sacrificing the ability to redraw money to save on rates? You also need to look at who you are borrowing through. If you find a deal too good to be true, be sure you have done your research on the company offering it to you.

Help is Available

If this all seems overwhelming but you are seriously considering refinancing debt, help is only a click away. Positive Solutions Finance specialises in finding positive solutions for people in debt. It does not lend money itself, but rather calls on a range of affiliate lenders to find you the best solution. Positive Solutions Finance takes the guess work out of refinancing debt. The professional Case Managers will work through the numbers with you to ensure it is the best solution for you and then help you find a credible professional lender.

For more information on Debt Consolidation, check out our Debt Consolidation page.

Topics: Debt Consolidation, Personal Debt, Lending

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