Background:  

Sarah and her husband Wayne, homeowners in Western Australia recently found themselves in a challenging financial situation after Wayne was unable to work due to health reasons.  

With cash flow issues developing, they resorted to using credit cards for everyday expenses. After a few months they were juggling multiple high-interest debts, and their repayments became very difficult – $1,500 per month in credit card repayments and $3,000 in home loan repayments.  

To add to their stress, Sarah and Wayne’s existing home loan had an uncompetitive home loan rate and their Lender refused to offer a debt consolidation option. 

Our Approach:  

Our team assessed the situation and identified that refinancing was the best solution. Leveraging the equity in their property, we arranged a refinance with a new Lender that: 

1. provided a more competitive interest rate of 6.14% compared with 7.19%, and; 
2. allowed for the consolidation of their high-interest credit card debts into the home loan 

Outcome:  

Within just three weeks, a refinance was completed, and all of their debts were consolidated into one manageable home loan repayment, at a much lower interest rate.  

Monthly repayments were reduced by $1,500 per month, and we saved $6,000 p.a. in interest.

The reduced financial pressure brought Sarah and Wayne peace of mind, easing their monthly cash flow and eliminating the burden of multiple high-interest payments.  

By acting quickly and securing a better loan, we were also able to avoid any potential negative impacts on their credit history records.