Home > News & Insights > How to pay off high-interest debt without touching your savings
Feb 1, 2022 |TEAM FUTURERENT
One of the greatest hurdles to financial wellbeing is high-interest debt.
The biggest culprit is credit cards, with the average interest rate on credit card debt at 19.94% per annum, according to the RBA.
Such a high rate makes it easy to accumulate debt very quickly. About 16.2 million Aussies own a credit card, collectively owing $32.8 billion in plastic debt.
If you own an investment property, Futurerent allows you to access up to $100,000 of rent in advance and use this to consolidate your existing debt.
When making repayments to multiple lenders or credit card companies, you need to be on top of your repayment due dates, all while being charged extra fees by multiple companies.
Making instalments to Futurerent, as opposed to repayments to multiple lenders, can help you simplify your debt significantly. Using Futurerent to consolidate your debt means you only need to pay one cost.
On top of this, instalments to Futurerent are paid straight from your investment property’s rental income – these are set up by your property manager when you first come onboard.
One of the reasons why property investors love Futurerent is you can pause your instalments if your tenant moves out or pays their rent late. So if something happens outside of your control, you don’t need to worry about accidentally missing a credit card payment and negatively impacting your credit score.
The cost of using Futurerent is fixed at 6% each year on the rent advanced, charged in monthly equal instalments.
As a quick guide, if you get $20,000 of your rent in advance to consolidate your debt and choose to pay it back over 3 years, you’d pay:
You’ll never pay interest or any hidden fees from using Futurerent – you'll always know exactly what you’re paying from the moment you apply. As the cost is fixed, if your property becomes vacant and you need more time to pay Futurerent back, your cost doesn’t increase.
Ready to take control of your debt? Check out our online calculator to help you crunch the numbers.
💡 Disclaimer: Please note that the information on this page is general information only and should not be taken as constituting professional or financial advice. Futurerent is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information on this page relates to your unique circumstances. Futurerent is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.
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Futurerent is a loan-free alternative to the banks, that gives property investors up to $100,000 of their rent, paid in advance. Simple, fast & 100% built for property investors, which means no interest, no credit impact, and no hidden fees.
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