Case Studies
A Hypothetical Scenario
1. Jack & Jill's Financial Transformation
Jack and Jill, 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 professionals 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 | ||
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. Loanwiz does not assert that these bear resemblance to current interest rates and as such should not be relied upon without first seeking independent financial guidance 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.
4. Results
By consolidating all credit card debts, the car loan, and the personal loan into their home loan, Jack and Jill:
- 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.