Are you aware of how to go about splitting your home loan and the benefits that that can bring about for you?
Having a mortgage or a home loan can be quite overwhelming. It can feel like this massive amount of debt, and it can feel like you’re really not making a lot of progress as you go. One way to try and break it down and make it feel more achievable in getting rid of that debt, is to actually split it in two, whereby you have one main part of the home loan, and then you break off and have a smaller portion that you try to knock over in quick succession.
In this example, there is a total debt of $450,000, and what we’ve done in this case is said, “All right, let’s move $400,000 off to the side, and let’s focus on knocking over $50,000 in the next three to five years,” which may be achievable for you, and you can obviously work those numbers to suit your individual situation.
This method allows you to just focus on trying to knock over that $50,000, rather than seeing this one huge amount of debt in front of you.
As you chip away at it and get closer and you get to the point where you have knocked that $50,000 over, you can then go again and split your home loan out again with another $50,000. This way you’re breaking your home loan down into manageable chunks.
It was once said that, “How you eat the whole elephant, is one bite at a time,” and there’s great power in just making it much more achievable for you with your home loan, by breaking it up into sections and knocking that over every three to five years.
