Australians have welcomed with open arms the Reserve Bank’s first official drop of interest rates in 7 years. The RBA on September 2nd, dropped its cash rate by 0.25 to 7%, its first cut since December 2001.
While this comes as a certain relief to many families struggling under the pressure of mortgages, many are still cautious. As Prime Minister Rudd announced “Interest rates took a long time to rise and they will take a long time to come back down. And the road will be a very uneven one on the way through.” However many remain optimistic, especially those struggling to make ends meet, and spiralling into debt.
Realities of the Interest Rate Cut
Time to Consolidate – The realities of the interest rate cut will mean homeowners with a $300, 000 mortgage will shave $52 a month off repayments, and $800,000 mortgages will enjoy $139 less a month. While these are not massive cuts, given the nature of the mortgage crisis and widespread debt, every little bit counts.
If you are struggling under the weight of debt, now is the time to consolidate. Australian Lending Centre hosts a team experienced professionals who can help you roll all your debts into one easier monthly repayment. ALC is not a Bank, so each customer is treated as more than just a number. Let us help put you on the road towards a brighter financial future. Call us on 1300 138 188.