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N 12 “The team are amazing! They consolidated my Credit Cards and Personal Loans fast and saved me a fortune” STEPS TO ELIMINATE CREDIT CARD DEBT “IN 5 YEARS”

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Page 1: TO ELIMINATE CREDIT CARD DEBT - Personal Loans · card debt. It remained the number one issue facing callers to the National Debt Helpline. With all that spending, it is no wonder

N

12

“The team are amazing! They consolidated

my Credit Cards and Personal Loans fast

and saved me a fortune”

STEPS TO ELIMINATE

CREDIT CARD DEBT “IN 5 YEARS”

Page 2: TO ELIMINATE CREDIT CARD DEBT - Personal Loans · card debt. It remained the number one issue facing callers to the National Debt Helpline. With all that spending, it is no wonder

www.financemi.com.au

©

THIS FOLLOWING FREE REPORT HAS BEEN APPROVED

FOR PEOPLE SERIOUS ABOUT REDUCING DEBT

BY THE TEAM AT www.financemi.com.au

Page 3: TO ELIMINATE CREDIT CARD DEBT - Personal Loans · card debt. It remained the number one issue facing callers to the National Debt Helpline. With all that spending, it is no wonder

Let me give you a little bit about us, before we answer that

question and give away everything for free in this report.

I have been working within the financial services sector for

20+ years, having held senior banking positions with

organisations such as ING Bank, Commonwealth Bank and

Royal Bank of Scotland.

My name is Cameron Parker and I also happen to own

Australia’s Greatest Ever Personal Loan Broker business –

Financemi.

As a business our mission is to help everyday Australians get

the funding, they need to help their lives at the best terms

possible!

Today I am giving you all of my knowledge, tips and methods to pay down your personal debt quickly, with a few secret

knowledge bombs thrown in. Enjoy and if you have any

questions, I am always available to assist

Cameron Parker Co-Founder / Director www.financemi.com.au 1300 815 462

Page 4: TO ELIMINATE CREDIT CARD DEBT - Personal Loans · card debt. It remained the number one issue facing callers to the National Debt Helpline. With all that spending, it is no wonder

In 2017 Australians spent a massive

$315,592,569,850 on their credit cards.

….. Yes, you read it right $315 Billion.

Source: Reserve Bank of Australia

If you feel that getting ahead of those credit card bills, personal loans or car loans is difficult, then I have some news for you. “You are not alone” As you can see from the stats above the amount of money that us Australians use on our credit cards each year is astonishing. A recent report by the Australian Securities and Investments Commission found 1.9 million Australians were struggling with credit card debt. It remained the number one issue facing callers to the National Debt Helpline.

With all that spending, it is no wonder the Banks love credit Cards, what with all those fees, charges and interest they charge. No wonder the Banks are making billions in profit. In this guide, I am going to show you how to consolidate those debts in to one easier to manage repayment. Saving you money in interest, lowering your monthly commitments and at the end … “Have no debt at all.”

Page 5: TO ELIMINATE CREDIT CARD DEBT - Personal Loans · card debt. It remained the number one issue facing callers to the National Debt Helpline. With all that spending, it is no wonder

nswer this question honestly, Do you pay extra on your credit card bills,

or do you stick to minimum payments every month? I am going to take a wild guess and say that you are like most people, it’s probably the minimum. While making minimum payments may help you keep your credit score from tanking, doing so costs you more in the long run. If you only make minimum payments, the amount of time it takes for you to pay off

your card increases at an exponential rate. As an example, if your credit card debt is $15,000, your interest rate is approximately 17 percent, and you make a minimum payment of $250.00/month: It will take you 135 months to pay off that card, or a little over 11 years. During that time, you’ll end up paying over $18,000 in interest, over and above the $15,000 limit. Now you can see why getting those cards paid off sooner rather than later make a lot of sense.

A

11 years 2 months $18,000 Only the minimum payment

Ever noticed on a credit card statement the below information?

Well it is no surprise most people pay only the minimum amount each month, because that is all you are required too.

The minimum repayment is often only 2.5% of your closing balance or a set amount

like $30, whichever is greater. Even the credit card providers will tell you that it is not

recommended as a long-term solution. If you make only the minimum monthly

payment, you will pay more interest and it will take you longer to pay off your

balance.

Page 6: TO ELIMINATE CREDIT CARD DEBT - Personal Loans · card debt. It remained the number one issue facing callers to the National Debt Helpline. With all that spending, it is no wonder

1 The first step is to fully understand what you have. In fact, it is essential to know

what you have before you can take control of your debt

Even if you just write it on a piece of paper or an excel spreadsheet you need to

know these main things before, we can point you in the right direction:

• Gather the account statements or review it via Internet Banking. Gather the following info:

o How much do you owe on each debt? What’s the grand total?

o What is the interest rate you are paying on each debt? (If you have a credit card the interest rate is likely to be somewhere between 9.99% and 22.99%)

o What are the monthly fees on each debt?

(Most Personal Loans have an account keeping fee of approximately $13 per month)

o Are there any break costs if you are to pay them out early?

Now you have a clear picture lets head to Step 2 ….

Page 7: TO ELIMINATE CREDIT CARD DEBT - Personal Loans · card debt. It remained the number one issue facing callers to the National Debt Helpline. With all that spending, it is no wonder

2 1

The early morning news breakfast TV gurus and others will tell you it is easy to

payout your debt.

Just save every penny, don’t eat smashed Avo and restrict every area of spending

in your life for the next 7 years and cut your cards up …wham – NO DEBT!

Easier said than done …

So now you know exactly what you have, let’s have a closer look at the 2 main

ways to pay it off:

Maybe that is a bit extreme “Have no Life” but, it is difficult to pay

more on your credit cards and not draw it back up to the limit every time something happens in life.

Credit Cards especially, are set up for you to spend, with little offers

like reward points, interest Free. buy now – pay nothing for 36

months ….

This option “Pay as Much as You Can over the next 5 to 7 years and

cancel the cards and Loans once paid off” is difficult to achieve. Not impossible with discipline, but hard to do!

Save every dollar and have no life for 5 years

Page 8: TO ELIMINATE CREDIT CARD DEBT - Personal Loans · card debt. It remained the number one issue facing callers to the National Debt Helpline. With all that spending, it is no wonder

2 Consolidate your Debt in to 1 new Loan

What … take out more debt to clear current debt?

That sounds stupid ….. ridiculous even.

Well actually let’s think about it … By consolidating all of your debts (I

will assume you have more than 1) you will have 1 loan repayment,

making it easier to manage. The repayment is principle and interest,

which means every repayment you make reduces the total amount you owe.

The interest rates are generally better than say credit cards, which means

you save on total interest and the minimum repayment amount is

generally lower than what you are paying across multiple debts, which

means you have more in your back pocket

Having more in your back pocket every month allows you to either have extra cash in case something happens in life or you want to make

additional repayments to the loan.

In Step 3 we will look at the benefits of Debt Consolidation:

Did you know that credit card lenders are now reporting every time you make a repayment on your card, or miss a payment, to the industry reporting body? It’s called positive / negative reporting. Even if you have a $2k credit card limit and you miss 1 payment greater than 7 days, it is reported. This can have a serious impact on your credit file and can impact borrowing later

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3

Page 10: TO ELIMINATE CREDIT CARD DEBT - Personal Loans · card debt. It remained the number one issue facing callers to the National Debt Helpline. With all that spending, it is no wonder

1 2 3 4 5

Lower Interest Rates

Most Personal Loans can offer

interest rates that are cheaper

than that available under a credit

card or other consumer loans. A

lot of lenders give us the rate

upfront so we can give you

accurate comparisons

One Repayment

Instead of juggling multiple

repayments, 1 repayment

allows you to breathe and

budget better every month. It

is often lower than your

combined repayment

amounts also.

Loan Paid in Full

At the end of the

consolidation personal loan

term the loan is paid in full,

meaning you have no further

debt. Loan terms are generally

anything from 2 to 7 years.

6

Principal & Interest

We only recommend Personal

Loans that are set up for both

Principle and Interest

Repayments, ensuring every

repayment pays off a little

more and the amount interest

is calculated on (balance) is

also reducing.

Fixed Rate Loans

Majority of Personal Loans

are fixed rates meaning the

amount you pay each month

does not change. This is

great to know how much

and when every payment is

coming out. Unlike fixed

rate home loans, you can

often pay more off with no

charge

Additional Repayments

Majority of Personal Loan

lenders allow you to make as

many additional repayments

to the loan as you like. Some

do have a break cost if you pay

it out early, but worse case it

is often only around $300.

Always check the fine print

For the next step checkout Number 4

Page 11: TO ELIMINATE CREDIT CARD DEBT - Personal Loans · card debt. It remained the number one issue facing callers to the National Debt Helpline. With all that spending, it is no wonder

4 We mentioned it briefly in quick tip 2, but your credit file is extremely important. The information it holds, let’s each lender know your history with other lenders, how many times you have applied for credit,

Did you know nearly every time you make an enquiry online it may leave a mark (lenders call them enquiries) on your file. Most people do not know this, and it could mean the difference between success in consolidating your debt or being stuck with it for several years to come. Lots of enquiries is BAD!

how much you have outstanding and lists any issues you have had with making repayments i.e. Defaulted on your commitments. Why is this important? Well most banks are using computer programs to determine your ability to borrow and they pull your credit file information as part of the auto review What your credit file has on it will determine how much a lender is willing to lend to you or even at all. For our clients this is the first thing we do. Over the page I am going to show you 2 options, get it for free in 10 business days or get a bank level access version of your credit file delivered free of charge in a matter of hours

Page 12: TO ELIMINATE CREDIT CARD DEBT - Personal Loans · card debt. It remained the number one issue facing callers to the National Debt Helpline. With all that spending, it is no wonder

Great news is you have 3 real options to get your credit file. I will list 2 of them here but, the first option I am going to tell you about is not really going to be much assistance to you (You can read about it if you want but we give it the red cross).

One thing a lot of people (even our competitors) don’t know, is that there are different levels of access to credit files and 3 different scores (Comprehensive, Negative & 1:1). What lenders look at, and make decisions on, is not normally listed on the free credit file you obtain. It is your 1:1 that is the most important for Personal Loans.

As a specialist personal loan broker, we provide our clients with their credit file upfront after they have completed a no obligation application. All at absolutely no cost to you. Best of all we have the same level of access to your credit file as the Banks do. This means that we can tailor your finance to ensure the greatest level of success based on where you have been before and your credit scores.

The first option is via an online company that pops up in google etc. They will offer you immediate access to your credit score in exchange for your details. You will then receive about 50 options for finance turn up in your inbox, all of which does not really help you. The only good thing is that it will give you an indication but trust me it isn’t accurate and doesn’t give you the score lenders look at.

Page 13: TO ELIMINATE CREDIT CARD DEBT - Personal Loans · card debt. It remained the number one issue facing callers to the National Debt Helpline. With all that spending, it is no wonder

How can I get a copy of my

credit file for free?

And … if I can, how long do I

need to wait until I receive it?

ou need to contact a credit reporting body (CRB) to obtain a copy of your credit report. You will be asked to provide personal information to enable them to properly identify you, such as full name, address,

date of birth, previous address and driver's licence number

• Equifax –1300 762 207

• Illion – 1300 734 806 • Experien – 1300 783 684

Your credit file is FREE:

• if you have applied for, and been refused credit, within the past 90 days

• where your request for access relates to a decision by a CRB or a credit provider to correct information included in your credit report, and

• once a year (not counting the above circumstances).

Credit Reporting bodies must give you a copy of your credit file within 10 days of receipt of your request.

Page 14: TO ELIMINATE CREDIT CARD DEBT - Personal Loans · card debt. It remained the number one issue facing callers to the National Debt Helpline. With all that spending, it is no wonder

5 So, it’s step 5, now it’s about putting it all together.

At this stage you have a pretty good grasp what debts you have

and how much they cost you every month. You know how a debt consolidation loan can make it easier to manage your repayments

and pay off your debt easier. You know where to get your credit

file and you understand that it has a huge impact on your ability

to consolidate your debt.

Now let me give you some compelling reasons why you should let

us take care of this for you;

Page 15: TO ELIMINATE CREDIT CARD DEBT - Personal Loans · card debt. It remained the number one issue facing callers to the National Debt Helpline. With all that spending, it is no wonder

1 There is no surprise here, but we highly recommend using a broker to

consolidate your debts, so why not use the best broker!

Why? well let me give you some extremely compelling reasons why we are the best, in fact the only choice in helping you consolidate your

debt;

• All we do is help people just like you, consolidate debt in to 1 easier

to manage payment

• We know what lenders will assist you based on your profile

• If we do not get you a better deal it costs you nothing ($0)

• We can give you your new repayment amounts upfront, including

interest rates

• We follow responsible lending guidelines, meaning if it is not in

your best interest, we will let you know.

• I give you free access to your Full Credit File

• 100% online applications make it super simple

• I can often have your debts consolidated in less than 24-hours

• I have access to 35+ lenders in Australia. All the lenders you know

and trust

Page 17: TO ELIMINATE CREDIT CARD DEBT - Personal Loans · card debt. It remained the number one issue facing callers to the National Debt Helpline. With all that spending, it is no wonder

The information provided within this report is intended to provide general information only and the information has been prepared without taking into account any particular person’s objectives, financial situation or needs. Before acting on such information, you should consider the appropriateness of the information having regard to your personal objectives, financial situation or needs. You should obtain professional advice before acting on the information contained in this report. You can do this by contacting us at [email protected]

Relevant information can be obtained by contacting us. No representation or warranty is made as to the accuracy, completeness or reliability of any estimates, opinions, conclusions or other information contained in this report. To the maximum extent permitted by law, we Financemi Group Pty Ltd disclaims all liability and responsibility for any direct or indirect loss or damage which may be suffered as a result of relying on anything within this report.