The festive season is just around the corner, and we’re pretty sure you’re all out there loading up on Christmas presents, holiday accommodation, and everything else that comes with this time of the year.
Loading up the credit card is something we see all too often, and then once the holidays are over, it’s time to get back to reality, and you get that awful ‘credit’ hangover.
It’s easy to whack a fair few thousand onto the credit card, and when it’s time to pay it all back, you’ll be paying it at 19.99% interest rates along with all the other charges that come along with working that card out.
When it comes time to repay your credit card debt, there is a much smarter strategy that you might consider deploying – consolidating your debt by leveraging the equity you have in your property!
It’s time to get your property re-valued!
With property prices at all-time highs, the first thing we would recommend is having your property valued again to assess how much equity you now have in it.
Post-valuation you will have a realistic understanding of equity you have, and how much you can utilise to pay-down your debts.
If you have sufficient equity in your property, you can draw down on that equity to pay off your credit card debt via another loan facility. Why is this a much smarter option? Rather than pay 19.99% interest on your credit card purchases, you’ll pay personal loan rates of less than 5%.
You can then set up a time period to pay this debt off (say a year or two), and then close the facility down. You can also pay as much as you want (and whenever you want) without the fear of being charged outrageous interest rates.
So, if you’ve racked up some serious credit card debt, and you own a property, get in touch with us today – we can work with you to unlock the power of your equity by consolidating your debt and paying it down at much lower interest rates.
The MAW Money team would like to wish you and your families a very Merry Christmas and a Happy New Year!