to eliminate credit card debt - personal loans card debt. it remained the number one issue facing...
Post on 21-Jun-2020
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“The team are amazing! They consolidated
my Credit Cards and Personal Loans fast
and saved me a fortune”
STEPS TO ELIMINATE
CREDIT CARD DEBT “IN 5 YEARS”
THIS FOLLOWING FREE REPORT HAS BEEN APPROVED
FOR PEOPLE SERIOUS ABOUT REDUCING DEBT BY THE TEAM AT www.financemi.com.au
Let me give you a little bit about us, before we answer that
question and give away everything for free in this report.
I have been working within the financial services sector for
20+ years, having held senior banking positions with
organisations such as ING Bank, Commonwealth Bank and
Royal Bank of Scotland.
My name is Cameron Parker and I also happen to own
Australia’s Greatest Ever Personal Loan Broker business –
As a business our mission is to help everyday Australians get
the funding, they need to help their lives at the best terms
Today I am giving you all of my knowledge, tips and methods to pay down your personal debt quickly, with a few secret
knowledge bombs thrown in. Enjoy and if you have any
questions, I am always available to assist
Cameron Parker Co-Founder / Director www.financemi.com.au 1300 815 462
In 2017 Australians spent a massive
$315,592,569,850 on their credit cards.
….. Yes, you read it right $315 Billion.
Source: Reserve Bank of Australia
If you feel that getting ahead of those credit card bills, personal loans or car loans is difficult, then I have some news for you. “You are not alone” As you can see from the stats above the amount of money that us Australians use on our credit cards each year is astonishing. A recent report by the Australian Securities and Investments Commission found 1.9 million Australians were struggling with credit card debt. It remained the number one issue facing callers to the National Debt Helpline.
With all that spending, it is no wonder the Banks love credit Cards, what with all those fees, charges and interest they charge. No wonder the Banks are making billions in profit. In this guide, I am going to show you how to consolidate those debts in to one easier to manage repayment. Saving you money in interest, lowering your monthly commitments and at the end … “Have no debt at all.”
nswer this question honestly, Do you pay extra on your credit card bills,
or do you stick to minimum payments every month? I am going to take a wild guess and say that you are like most people, it’s probably the minimum. While making minimum payments may help you keep your credit score from tanking, doing so costs you more in the long run. If you only make minimum payments, the amount of time it takes for you to pay off
your card increases at an exponential rate. As an example, if your credit card debt is $15,000, your interest rate is approximately 17 percent, and you make a minimum payment of $250.00/month: It will take you 135 months to pay off that card, or a little over 11 years. During that time, you’ll end up paying over $18,000 in interest, over and above the $15,000 limit. Now you can see why getting those cards paid off sooner rather than later make a lot of sense.
11 years 2 months $18,000 Only the minimum payment
Ever noticed on a credit card statement the below information?
Well it is no surprise most people pay only the minimum amount each month, because that is all you are required too.
The minimum repayment is often only 2.5% of your closing balance or a set amount
like $30, whichever is greater. Even the credit card providers will tell you that it is not
recommended as a long-term solution. If you make only the minimum monthly
payment, you will pay more interest and it will take you longer to pay off your
1 The first step is to fully understand what you have. In fact, it is essential to know what you have before you can take control of your debt Even if you just write it on a piece of paper or an excel spreadsheet you need to know these main things before, we can point you in the right direction: • Gather the account statements or review it via Internet Banking. Gather
the following info:
o How much do you owe on each debt? What’s the grand total?
o What is the interest rate you are paying on each debt? (If you have a credit card the interest rate is likely to be somewhere between 9.99% and 22.99%)
o What are the monthly fees on each debt?
(Most Personal Loans have an account keeping fee of approximately $13 per month)
o Are there any break costs if you are to pay them out early?
Now you have a clear picture lets head to Step 2 ….
The early morning news breakfast TV gurus and others will tell you it is easy to
payout your debt.
Just save every penny, don’t eat smashed Avo and restrict every area of spending
in your life for the next 7 years and cut your cards up …wham – NO DEBT!
Easier said than done …
So now you know exactly what you have, let’s have a closer look at the 2 main
ways to pay it off:
Maybe that is a bit extreme “Have no Life” but, it is difficult to pay
more on your credit cards and not draw it back up to the limit every time something happens in life.
Credit Cards especially, are set up for you to spend, with little offers
like reward points, interest Free. buy now – pay nothing for 36
This option “Pay as Much as You Can over the next 5 to 7 years and
cancel the cards and Loans once paid off” is difficult to achieve. Not impossible with discipline, but hard to do!
Save every dollar and have no life for 5 years
2 Consolidate your Debt in to 1 new Loan What … take out more debt to clear current debt? That sounds stupid ….. ridiculous even.
Well actually let’s think about it … By consolidating all of your debts (I
will assume you have more than 1) you will have 1 loan repayment,
making it easier to manage. The repayment is principle and interest,
which means every repayment you make reduces the total amount you owe.
The interest rates are generally better than say credit cards, which means
you save on total interest and the minimum repayment amount is
generally lower than what you are paying across multiple debts, which
means you have more in your back pocket
Having more in your back pocket every month allows you to either have extra cash in case something happens in life or you want to make
additional repayments to the loan.
In Step 3 we will look at the benefits of Debt Consolidation:
Did you know that credit card lenders are now reporting every time you make a repayment on your card, or miss a payment, to the industry reporting body? It’s called positive / negative reporting. Even if you have a $2k credit card limit and you miss 1 payment greater than 7 days, it is reported. This can have a serious impact on your credit file and can impact borrowing later
1 2 3 4 5
Lower Interest Rates
Most Personal Loans can offer
interest rates that are cheaper
than that available under a credit
card or other consumer loans. A
lot of lenders give us the rate
upfront so we can give you
Instead of juggling multiple
repayments, 1 repayment
allows you to breathe and
budget better every month. It
is often lower than your
Loan Paid in Full
At the end of the
consolidation personal loan
term the loan is paid in full,
meaning you have no further
debt. Loan terms are generally
anything from 2 to 7 years.
Principal & Interest
We only recommend Personal
Loans that are set up for both
Principle and Interest
Repayments, ensuring every
repayment pays off a little
more and the amount interest
is calculated on (balance) is
Fixed Rate Loans
Majority of Personal Loans
are fixed rates meaning the
amount you pay each month
does not change. This is
great to know how much
and when every payment is
coming out. Unlike fixed
rate home loans, you can
often pay more off with no
Majority of Personal Loan
lenders allow you to make as
many additional repayments
to the loan as you like. Some
do have a break cost if you pay
it out early, but worse case it
is often only around $300.
Always check the fine print
For the next step checkout Number 4
4 We mention