For Australian families hoping to work on their financial fitness, Infinity Group Australia and MPA Top 100 Broker Graeme Holm offer ongoing guidance, support, and helpful tips. Their expert coaching makes it possible for everyday Australian families to achieve even their loftiest financial goals.
Although many individuals in debt are tempted to try debt consolidation, Holm and Infinity Group Australia caution that this practice is best avoided. In this article, we’ll explain why debt consolidation isn’t your best bet—and what approaches Graeme Holm and Infinity Group encourage instead.
About Infinity Group Australia and Graeme Holm
Graeme Holm is the director of Infinity Group Australia, with locations in Bella Vista, Cronulla, Melbourne, Brisbane, and Port Macquarie. Holm spent the first decade of his 17-year financial services career in a Big Four banking environment.
While there, Holm observed that many of his clients were living paycheck to paycheck and making only minimum loan repayments across the 30-year term. He became frustrated with Australian families receiving a poor deal and suffering from lack of ongoing support and services.
In 2013, Holm decided to combine his passion for finance with his desire to get a better deal for Australian families, and Infinity Group Australia was born. When Holm opened his first office, it had just a couple of desks and even fewer employees, but his client-first approach proved highly successful, and business quickly expanded to five locations.
With help and resources from Graeme Holm and his team, clients eliminate an average of $41,000 in debt within 12 months. 100 percent of clients pay more off their home loans in just three months with Infinity Group Australia than in the full 12 months prior.
To help families reach their goals, Infinity Group Australia acts as a “personal trainer” for client’s finances, providing coaching, performance reports, detailed reviews, and a variety of tips and suggestions, including avoiding debt consolidation.
What Is Debt Consolidation?
Debt consolidation combines several high-interest debts, such as credit card payments, into one monthly bill. It promises (often falsely) lower interest rates and a lower monthly payment.
This arrangement is tempting for families because of claims that it will reduce your total debt and get you organized so you can pay off debt faster.
The two main ways to consolidate debt are:
1) Transfer all debts onto a 0% interest, balance-transfer credit card and pay the balance in full during the promotional period.
2) Get a fixed-rate debt consolidation loan and use the money to pay off your debt, then pay the loan off in installments over a set time period.
Why Should You Avoid Debt Consolidation?
Debt consolidation doesn’t sound too bad so far—so what’s the catch? Let’s look at a few reasons Graeme Holm and Infinity Group Australia suggest avoiding debt consolidation.
Lower Interest Rates Aren’t Guaranteed
The truth is that debt consolidation often promises one thing while delivering another. The lender or creditor sets your interest rate, which is generally dependent on your credit score and past payment record.
Even if you qualify for a low interest rate, it’s not guaranteed to stay low. In the case of credit card balance transfers, for example, this tempting low interest rate is only for a set promotional period. After that, the rate will rise and continue to increase over time.
This means that one of the biggest “benefits” of debt consolidation isn’t even a guarantee.
You’ll Be in Debt Longer
Another issue with debt consolidation is that you’ll be in debt longer, when the goal should be to get out of debt as quickly as possible.
The reason your monthly payments are typically lower is because you’ll be paying them for a longer amount of time. In the long run, this usually means you’re paying even more money than you would have otherwise.
The bottom line is that you’ll spend more time in debt than necessary. Your monthly payments may be lower, but the total amount you pay will likely be higher.
Your Financial Behaviors Won’t Change
When it comes to financial fitness, debt consolidation is only a temporary solution. It fails to address the underlying issues or behaviors that led to you and your family being in debt.
Often, people consolidate their debt and eventually pay it off, only to go into debt again. That’s because they haven’t taken the time to plan, budget, or otherwise establish healthy financial habits. Simply treating the symptoms of your money management problem isn’t enough to live a less stressful, debt-free life.
So What’s the Answer?
If debt consolidation isn’t the solution, then what is?
Instead of borrowing loans to pay off other loans, it’s necessary to address the financial behaviors that led to this situation in the first place.
Infinity Group Australia and Graeme Holm don’t offer flimsy short-term solutions. They help you create a long-term plan for staying out of debt and creating wealth.
Infinity Group Australia starts with a fact-find that goes into extensive detail around household expenses and ongoing family needs. With this information in hand, the team collaborates with clients to develop a weekly cash-based budget for expenses such as fuel, groceries, travel, and entertainment.
Clients then receive a monthly performance report that allows them to determine if they are reaching their goals and expectations or if adjustments need to be made to the previously developed budget.
Infinity Group Australia Reviews
This approach may require more commitment and work on your part, but it produces real, lasting results. For proof, just read through a few Infinity Group Australia Reviews.
After working with Graeme Holm and Infinity Group Australia, says Aisha Aboud, “Our finances are now in control. We are no longer spending on a whim…We feel in control at all times and we know where our money is going and what it is doing.”
Daniel and Bernadette Smith say, “Since joining the Infinity Group family, it is the first time in 18 years we can see light at the end of the tunnel.”
Ian Abela adds, “Infinity Group Australia has been able to reduce our home loan from 17 years down to 5 and a half and put us onto a self-managed super fund so when my wife and I are ready to retire we will be able to live comfortably.”
Client Rachel Ninham shares, “The kids are happier because we are happier, less stressed, have fun, and laugh again. So thank you Graeme and Infinity Group Australia for the system, the advice, and the hope.”
Debt consolidation may sound good at first, but it isn’t a lasting solution. Your family deserves long-term financial fitness that leads to the creation of wealth and a secure future.
Final Thoughts on Graeme Holm and his Company
Like personal fitness journeys, financial fitness journeys require effort, time, and commitment. It may not be easy, but Graeme Holm and Infinity Group Australia put their clients first, providing the support needed to ensure financial success for everyday Australian families.
Part of this process involves working together to create a reasonable cash-based budget and a financial plan that is tailored to your family’s needs. “Quick-fix,” short-term solutions like debt consolidation will not help you in the long run.
By building a long-term plan with financial experts like Graeme Holm and Infinity Group Australia, committing to a weekly budget, and receiving ongoing advice and support, you’ll help your family secure the financial fitness you’ve always dreamed of.