A hypothetical scenario

1. Peter & Susan's Financial Transformation

Peter and Susan, with a combined income of $125,000, were struggling with a home loan, car loan, personal loan, and multiple credit card debts. With no extra cash flow, they were unable to invest or plan for retirement. After consulting with our qualified financial experts at our Melbourne office, they restructured their finances, consolidated their debts, and freed up funds to invest in a property.

2. Before Consolidation

Liability Outstanding Amount Interest Rate Monthly Repayment
Home Loan $400,000.00 5.99% $2,395.63
Car Loan $35,000.00 8.95% $261.04
Credit Card 1 $20,000.00 19.50% $375.00
Store Card 1 $10,000.00 18.00% $150.00
Personal Loan $10,000.00 6.54% $133.33
Total Monthly Repayment $3,315.00

4. Results

By consolidating all credit card debts, the car loan, and the personal loan into their home loan, Peter and Susan:

  • Reduced their monthly repayments by $470.19.
  • Eliminated high-interest debts (up to 19.50%).
  • Freed up cash flow to invest in an investment property.
  • Created a clear path to plan for retirement.

3. After Consolidation

Liability Outstanding Amount Interest Rate Monthly Repayment
Home Loan $475,000.00 5.99% $2,844.81
Total Monthly Repayment $2,844.81
*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.

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