Debt Consolidation Loans

How can I use a debt consolidation loans

If you need to consolidate your debts below is an example of how debt consolidation works and how it can help you improve your cash flow so you have more money in your pocket.

Home Equity

There are a number of proven methods for debt consolidation if you have equity in your home, often the most cost effective way is to redraw against your home loan to pay off other debts. Not only does this make repayments more manageable, but can substantially reduce interest and reduce payments, as home loans tend to have lower interest rates than other forms of credit.

Credit card balance transfers

Alternatively, if you have an AMO home loan, you can roll all your small debts onto a low interest credit card, making substantial savings as this credit card is at home loan rates. The most important thing to remember if you are taking out a debt consolidation loan is to continue to pay as much as possible each month off the balance of the loan. By only paying the minimum amount per month, all debts will still be active for the whole life of the loan – up to thirty years.

There are many reasons why you should switch or consolidate debt into one easy-to-manage home loan with AMO.

• Save money
• Simplicity of one easy to manage repayment
• Reduce monthly repayments
• End frustration with existing lender
• Close other loan facilities such as credit cards, store cards or personal loans.

AMO Real Life Example

When Joe + Wendy visited AMO, they were struggling with a home loan, two personal loans and three credit cards. AMO refinanced their home loan, consolidated their debts, lent them an additional $34,570 and still Joe + Wendy’s repayments were reduced by a staggering $1,556 per month.

Would you like more money in your pocket? Call AMO on 133 266 for an obligation free mortgage health check. Alternatively, visit AMO and if we can’t improve your current home loan situation, we’ll give you $100 for your time. You’ve got nothing to lose yet you could save thousands. AMO … more money in your pocket.

Don’t forget….

If you take out a debt consolidation loan, make additional repayments reach month to reduce the total loan. Work out a household budget and stick to it to avoid the problem happening again. If you have problems sticking to your budget, try cutting up your credit cards and change to a debit card instead. They offer the flexibility and convenience of credit cards but allow you to only use your own money for purchases.

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