Verve Finance

	CONTACT - E: info@vervefinance.com.au T: 03 9417 7778 F: 03 9417 6880

Peter and Susan have a combined income of $95,000, a home loan, car loan, personal loan and a few credit card debts. In their current situation, they have no extra money to do anything. They want to start investing and create a plan for retirement. After a visit to our Melbourne office to discuss their situation with one of our qualified financial consultants, Peter and Susan have since restructured their finances and paid off all their credit card debts by consolidating them into their home loan. Further, they were able to free up their cash flow and put money towards an investment property.

Before Consolidation:

Liabilities

Oustanding Amount

Interest Rate

Monthly Repayment

Home Loan

$400,000.00

7.24%

$2,725.99

Car Loan

$35,000.00

8.95%

$261.04

Credit Card 1

$20,000.00

22.50%

$375.00

Store Card 1

$10,000.00

18.00%

$150.00

Personal Loan

$10,000.00

16.00%

$133.33

Monthly Repayment: $3,645.37

However, after consolidation, there is only the Home Loan at $475,000.00, and an interest rate of 7.24%.

This means a Monthly Repayment of $3,237.12

And a savings per month of $408.25.

*Figures and interest rates are indicative and used for the purpose of this comparison only. Verve does not assert that these bear resemblance to current interest rates and as such should not be relied upon without first seeking independent financial advice based on borrower’s individual circumstances. Figures and interest rates quoted for “Home Loan” in both scenarios assume a variable interest rate over a maximum loan term of 30 years with Principal and Interest repayments. Figures and interest rates quoted for “Car loan/lease”, “Credit cards 1 & 2” and “Personal loan” are used for the purpose of this comparison only.