How Secured Lending Helped the Williams Get Their Debt Under Control
Loansmart is a Debt Consolidation Loan Broker. We help people take control of their finances with affordable loans, low interest loans.
Current Reality
Meet the Williams, a married couple who rent with no children. Together they owed $99,000 in personal loans. Interest rates range from 20.95% through to 21.95%. They needed a new laptop but had no extra cash to pay for it, and their debt was costing them $700 a week to service. With very little room to save, they wanted to make their repayments more affordable so that they could start putting away some extra cash—without taking out another loan when something unexpected popped up like an appliance repair. On top of that they had five loan repayments to keep track of. Your credit score is negatively impacted by missed loan repayments. It’s much easier to keep track of just one loan repayment.
Desired Future
Mr and Mrs Williams had four goals: 1. Reduce their loan repayments, 2. Lower their interest rates, 3. Get a top up of $2200, and 4. Pay off all their existing loans. This seems like another tall order. How did Loansmart’s team deal with this one?
Solution
Loansmart moved the Williams from unsecured lending to secured lending by using their 2010 and 2015 cars as security. Due to this, they have been able to lower their payments significantly, from $700 a week to $500 a week. This allowed them to save over $800 a month! With extra cash, they can put aside money for emergency situations or to save for something special. The interest rate was reduced to 18.95%, saving between 2% and 3%. For a personal loan of this amount, it makes a real difference.
All loans were repaid, which means they now only have to keep track of one repayment. Paying off existing loans can also help to improve credit scores.
But did they get the extra cash they needed for the laptop? They sure did! By lowering their repayments, the Willams had the ability to borrow more.
Debt Consolidation Loan Broker
Loansmart are debt consolidation loan brokers. We are also personal loan brokers. We work in your best interests to help you find fast, fair and affordable loans. Learn more about what an online loan broker does, and how we can help you.
Key Takeaways
By working together with Loansmart, the Williams have managed to lower their interest rates from 20.95% – 21.95% down to 18.95%, and we have lowered their repayments by $200 a week which gives them much needed breathing room in terms of budgeting and savings goals! By helping the Williams with a better loan structure, and by lowering their repayments, it places less stress on their finances. If this couple’s situation sounds familiar to you, Loansmart is here to help you get back on track financially! Get a FREE loans assessment and see how we can help you start achieving your financial goals!
PS – Want to know what the average debt consolidation amount is? Check out our handy infographic on Debt Consolidation By The Numbers.
