The Seven Year Plan to a Debt-Free Lifestyle

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Is it possible to become debt free in seven years? What’s more, it may be possible to become debt free in seven years while living the life you want and fulfilling your dreams and aspirations along the way.

To achieve this, it is simply a case of making smart choices and understanding how you can adapt your financial outlook and your spending habits within your current circumstances.

In this article we’re going to look at becoming debt free in seven years in the context of using personal loans to get what you want, and also in the context of ridding yourself of credit card debt. Let’s begin by looking at how debt consolidation can help you become debt free in seven years.

Consolidating Your Credit Card Debts

Credit card debts are one of the most dangerous types of debt we can have. This isn’t because having debt on credit cards looks worse on your credit report than having a personal loan, but because many of us fall into the trap of only making the minimum payment every month.

Depending on your interest rate and the total balance on the credit card, making the minimum payment can translate in real terms to you servicing the interest payments and then repaying only a very small amount of the actual balance. You could be paying $100 a month on your credit card and maybe only $2 of that is actually coming off your debt!

The below example looks at a credit card balance of $10,000, and how long it will take you to clear if you only make the minimum payments.

Who wants to spend over 54 years repaying a credit card debt of $10,000? The big problem with credit card debt is that you might not be able to actually afford to pay any more. You are well and truly in the revolving debt trap, and the credit card provider knows it.

By consolidating your credit card debt with a personal loan, you could save a huge amount of money and become debt free in just seven years. The below table highlights how you could use a $10,000 personal loan from NOW FINANCE at the same rate to achieve this.

As you can see, such is the amount you save with a personal loan that you could actually take out a loan for $10,000, repay it, then take out another loan for $10,000, repay that, and still have saved money against the cost of an equivalent credit card balance!

Why keep making the minimum payments on a credit card when you can:

  • Save such a significant amount of money in the time it takes to get debt free
  • Depending on your circumstances, save even more by getting a NOW FINANCE personal loan which may have a lower interest rate than your credit card
  • Become debt free in seven years, or perhaps even quicker depending on how much you can afford to repay on your loan.

Using a Personal Loan to Get Those Things You Want, Now

If you don’t find yourself loaded with credit card debt, then you can use a personal loan from NOW FINANCE to get those things you want, now.

Have you been saving for years because you’re aiming for that dream home renovation, or are planning that once in a lifetime holiday you and your family always speaks about? Do you end up using these savings for emergencies or sudden unexpected expenses? Do you end up not being able to save what you want to each month, so your dreams and aspirations just keep getting further away?

If you could afford to make the repayments on a personal loan, then why not use one to fund your next big purchase or that once in a lifetime trip?

Among the alternatives to using a personal loan, we’ve already highlighted the problems with using credit cards above. Do you really want to put your home renovation or vehicle purchase on your credit card? Your new $15,000 car could end up costing you far more if you take that approach!

Life is for living, not for waiting around. Remember the old saying that “life is what happens while we make other plans?” Don’t wait for the day that might never come.

The beauty of a NOW FINANCE personal loan is that you can borrow up to $50,000 and you’ll be debt free in seven years!

Clear Your Credit Card Debt and Follow Your Dreams

For many Australians, the goal of consolidating and clearing credit card debt might be enough in itself.

Depending on your wider dreams and ambitions, you could borrow a little more than what you’re looking to clear from your credit cards, and take that dream holiday or undertake that swimming pool installation you’ve been dreaming of for years at the same time.

In just seven years, you may have cleared your credit card debt, achieved a huge lifetime goal or ambition around travelling, improving your home, buying a particular vehicle, or something else, and have repaid your NOW FINANCE personal loan in full.

The Seven Year Plan to a Debt Free Lifestyle

Whether you want to clear your credit card debts to become debt free quicker while saving money, are looking to fulfil a long-held ambition, or want to do both, NOW FINANCE understands these aspirations, and wants to help you achieve them.

Get debt free in 7 years while achieving your dreams with a NOW FINANCE personal loan.

Get your interest rate here before applying.

Disclaimer:  This article contains general comments and recommendations only. This article has been prepared without taking account of your objectives, financial situation or needs.  Before taking any action you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs. If this article relates to the acquisition, or possible acquisition, of a particular credit product you should obtain and consider the relevant disclosure documents before applying for the product.

Things you should know

Applications for finance are subject to NOW Finance’s lending and approval criteria. Terms and conditions may apply.  No establishment, account keeping or early repayment fees will apply. Charges such as default or enforcement costs may apply if you do not comply with the terms of your loan. Settlement times may vary depending on individual circumstances. Loan repayment terms range between 18 months to 7 years.  For unsecured loans you can borrow between $5,000 to $50,000 with interest rates ranging from 5.95% p.a. (5.95% p.a. comparison rate*) to 17.95% p.a. (17.95% p.a. comparison rate*).  For secured loans you can borrow between $15,000 to $100,000 with interest rates ranging from 4.45%p.a. (4.45% comparison rate*) to 15.45% p.a. (15.45% p.a. comparison rate*).

*About Comparison Rates

The Comparison Rate is designed to help you understand the overall cost of the personal loan. It combines the amount of the loan, loan term, repayment frequency, interest rate, fees and charges into a single rate to show the total true cost of the loan. The comparison rates for the NOW Finance loans are based on a loan of $30,000 over 5 years. WARNING: The comparison rates given are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Due to the fact NOW Finance does not charge any establishment, account keeping or early repayment fees, the true cost of the loan or Comparison Rate will always equal the interest rate quoted.


our confirmed guaranteed personalised rate may change if you provide NOW Finance with incorrect personal information or security details.  In some circumstances, NOW Finance may require further information from you in order to provide you with your guaranteed personalised rate.

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