| Used wisely,
a RLOC can greatly reduce the amount of interest paid on debt because
your income
is credited directly to the loan and immediately reduces the principal
until redrawn. In conjunction with a credit card, borrowers can accumulate
regular living expenses on their credit card while all income is directed
to the RLOC account reducing the debt until the due outstanding balance
of the card is automatically cleared from the RLOC at the end of the interest
free period. Because your credit limit is higher than your actual level
of debt, you always have access to funds and have therefore, no need for
other savings or cheque accounts.
The RLOC Mortgage is ideal for people with strong incomes who
want to reduce their debt quickly and have the discipline to manage
the credit
limit. The facility can be split into sub accounts if required to separate
personal debt from investment debt. This type of mortgage is ideal for
investors who require permanent access to funds for investment purposes.
Once the credit limit is established, it remains in place regardless
of the amount of actual debt.
These are very powerful loans and are not for those who can't manage
their spending. On the other hand, for those who are good with their
money, they provide an excellent vehicle to manage their finances in
a single account and minimise banking fees and many unnecessary over
the counter type transactions.
Talk to us about how a RLOC might assist you better manage your current
finance needs and provide a secure flexible platform for everything else
your financial life will demand.
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