Zenon Group Financial profile comparison
We’re all familiar with feeling the time put into consistently investigating our financial opportunities can be exhausting and the effort expended to understand more about our options could outweigh the improvements achieved.
One thing the Zenon Group is familiar with is that when it comes to your own financial circumstances, dire or not, taking a back seat in your own circumstances can often lead to disappointment.
What you’ll see below is a snapshot of an average financial circumstance before investigating what is available and by applying some relative recommendations, what can be achieved moving forward.
At the Zenon Group we had the pleasure of meeting Pat and his wife Tom who were servicing a mortgage that was hovering at just over $350,000.00. Based on our assessment of Toms and Pat’s loan structure, we found that they would be servicing their loan for a further 27 years of their working lives.
Complicating matters were their two credit cards and two personal loans, totalling just under $80,000.00, that were drinking large amounts of Tom and Pat’s income every month.
Tom’s loan was through one of the big four banks and he had sought to consolidate his auxiliary debts into his mortgage with the equity that he and Pat had been able to create.
Even though Tom had been in the same job for 32 years and Pat had been working in full-time employment for the last 5 years, their bank was unwilling to grant them a consolidation plan. This outcome was after the bank seeing consistent repayments across their home loan, personal loan and credit card held with the same institution.
With some investigation by the Zenon Group, we were able to find a suitable consolidation plan with a competitor that could see the value of having Tom and Pat as customers. In addition, the Zenon Group was able to recommend a debt reduction programme that will allow Tom and Pat to reduce their mortgage term from 27 years, down to 11.5 years which will include paying off their credit cards and personal loans.
While these are fantastic long term benefits, the immediate change for Tom and Pat was moving from a cash-flow of negative $5200.00 per year to having a surplus of $23,500.00 per year. In conjunction with eliminating wasted credit expenses, this revision of Tom and Pat’s circumstances will hopefully give them some more freedom of movement financially, and take a little stress off their shoulders.
While this circumstances is unique to Tom and Pat, regularly reviewing your financial position and having the right people to speak to in regard to your mortgage and debt could mean the difference of 15 and a half years of your working life dedicated to servicing debt and keeping your head above water.
When asked when is the right time to start looking at what your options are, the safest bet is any chance you get!