Can refinancing your home loan help you beat the post Christmas debt bulge?

Financial resilience is top of mind for most of us right now. You may be reviewing your expenses and thinking, how can I reduce my costs?

Feeling the post Christmas debt bulge?

You are not alone.

Australians spend over $31.6 million in the month before Christmas, a figure well beyond pre pandemic spending*.

You may be looking at your festive spending and thinking, how can I reduce my costs?

Many people know that

Consolidate and save

When it comes to debt, the goal is to pay as little interest as possible.

One way to achieve this is by consolidating personal loans (e.g. credit cards, car loans or any debt with high
) into your mortgage which generally has a much lower interest rate.

By doing this you:

  1. reduce the amount of payments you are managing
  2. bring down your monthly repayments to a lower amount.

    Here is how this might look. Say you have the following expenses:

Refinance calculator
  1. If you were to consolidate your personal debt (the credit card and car repayments) into your mortgage, your expenses each month may look like:

Refinance calculator
  1. As you can see in the scenario above, you stand to save $603 per month by consolidating your expenses.

    The RBAā€™s most recent announcement set the cash rate to a historic low of 0.10% which is resulting in interest
    at generational lows.

    Right now many
    and banks are offering incentives to refinance, some in the thousands of dollars!

    Now is an opportune time to take a look at your current loan and see if you could be on a better deal.

    At the moment, if your comparison rate doesnā€™t start with a 2, you should call us to see how we may be able to help you renegotiate or refinance to a better rate.

Keep in mind

Itā€™s worth considering that this strategy isnā€™t foolproof. Whilst you are getting the benefit of simplifying the number of repayments you are making each month and paying less interest in the short term, if your payments stretch over a longer period, you may end up paying more over the lifetime of your debt.

Paying off larger amounts than your minimum repayment when you are able to can help overcome this and make sure you get the full benefit of consolidating your debt.

The real key is to maintain the same level of repayments with the new structure as you were with the old structure so you pay the principal off much faster and save big time over the long run.

Three important steps

If youā€™re concerned about your post Christmas debt, here are three simple steps you can take to get back on track:

  1. Review your expenses
  2. Consolidate your personal debt into a lower interest rate loan where possible
  3. is a free, quick and easy way to check.

    can help you through the process of refinancing and advise what options suit your needs.

    *Lian, AccountantsDaily, 2021


Book Call Now

UNO home loans

Try Plans, by UNO
Mortgage calculators completely reimagined
Get Started
Considering a purchase or refinance?

Try Plans by UNO

Mortgage calculators completely reimagined
Get Started
ā˜Žļø šŸš« No cold call promise

Related Articles

TESTIMONIALS

What our customers are saying

Crush Huston
November 8, 2024
Paul is an amazing broker. Communicative, responsive and knows his stuff! Highly recommend
Read more
Amanda Pearce
November 7, 2024
After just four months in Australia, our New Zealand home sold, prompting us to stop renting and invest locally. We found Paul through a Kiwi Facebook group, and his exceptional service exceeded our expectations. From initial contact, Paul provided clear explanations, friendly communication, and prompt responses to our queries, making our mortgage process remarkably smooth. We highly recommend him.
Read more
Dom Saric
November 3, 2024
Mike Parsons went above and beyond to ensure that our refinancing journey was painless and successful. He was communicative, accessible (even working while on holidays!), and his knowledge of the systems at play meant that he picked up on things that other brokers missed. Would 100% recommend Mike, and will definitely be back next time we need a broker.
Read more
Ashleigh Breaden
October 31, 2024
Mike Parsons handled our refinance of our home loan with ease and a depth of knowledge that ensured we got the best deal possible for our situation. We didn't have an easy one to solve for with my husband being self employed and we were consolidating finances as well for a car loan. But Mike handled it all for us and once we had provided him with all the documents we literally didn't have to do a thing after that, it was so easy and so quick we are super happy with the experience! Top notch! Highly recommend!!
Read more
Kyle Richards
October 10, 2024
Absolute legend, helped me through the first home buyers scheme, explained everything in a way that made sense, was very knowledgeable and a joy to work with.
Read more
Chloe S
October 8, 2024
Mike Parsons made it possible for us and the in laws to get 2 pretty complicated home loans. He helped us through everything and we'd be happy to use Mike and the team again for anything we needed. Thanks again!
Read more
Sam Rezai
October 2, 2024
I have gone through 6 different mortgage brokers prior to meeting Andrew Wyers. He is the most patient mortgage broker Iā€™ve encountered and also the most knowledgable about the bankā€™s lending process and products available. It took me 1 year to find a house I was happy with and Andrew was always there to assist with any issues or questions I had; he always return my phone call, even on the weekends or when his away on holidays. The loan process was smooth and I had no complications. The process with Andrew was again nice and easy, he took the time to find and put together the right package that was suited to my situation. I have recommended Andrew to my family & friends and everyone have been grateful and completely satisfied with his service.
Read more
S Wilko
September 23, 2024
I had not dealt with Scott or UNO before finding them on the internet. Even as an Australian citizen living and working overseas, I knew obtaining a loan would be difficult. However, Scott went above and beyond what I expected from a mortgage broker. I genuinely donā€™t think you could find another company that works as hard as they did to get my home loan approved. I cannot recommend them highly enough. Everyone I dealt with at UNO were extremely professional and helpful. If you are looking for a broker, you would be mad not to give them a go. Thanks to Scott Wilkinson, Dalby Bajwa, Jena Lasquite and Andrew Pacini. Shaun.
Read more
Shan Liao
September 3, 2024
I had an outstanding experience with Tian Liu. He was incredibly professional and attentive, going above and beyond to meet my needs. His expertise and dedication made the entire process smooth and stress-free. Tian's deep knowledge of the market and commitment to finding the best solutions for his clients truly sets him apart. He was always available to answer my questions and provided invaluable guidance throughout. I highly recommend Tian Liu to anyone in need of a reliable and skilled broker!"
Read more
Nathanael Chin
September 3, 2024
Tian Liu provided exceptional service throughout the entire process. His professionalism and keen attention to detail were evident from the start. Tian consistently kept us informed and offered insightful advice that made us feel confident in our decisions. He truly cares about his clients and works tirelessly to ensure the best possible outcome. We couldn't be happier with his assistance and highly recommend Tian to anyone looking for a trustworthy and knowledgeable broker.
Read more
Patrick Winters
August 14, 2024
For the past three years, it has been an absolute pleasure to work with Mike Parsons. He has consistently helped us navigate commercial property loans with skill and efficiency. Mikeā€™s timely and professional responses to our inquiries have been invaluable. We have built a strong, reliable relationship with him and eagerly anticipate continuing our collaboration in the future. We highly recommend his services.
Read more
Lee Robibaro
August 6, 2024
I am so thankful and grateful to have Scott Wilkinson as my broker. He not only looked after me every step from start to finish he gave me confidence and I was able to trust him and his expertise. My children and I are now happy in our new home and very appreciative of Scott's help. I will definitely be only having Scott as my broker from here onward as there is no mucking around and straightforward answers. Thanks again
Read more