Always Consider Cost

You should keep in mind that although consolidation can simplify loan repayment and lower your monthly payment, it also can significantly increase total cost of repaying your loans. Consolidation offers lower monthly payments by giving borrowers up to 30 years to repay their loans. So, you'll make more payments and pay more in interest. In fact, in some situations consolidation can double your total interest expense. If you don't need monthly payment relief, you should compare cost of repaying your unconsolidated loans against cost of repaying a consolidation loan. You also should take into account impact of losing any borrower benefits offered under non-consolidated repayment plans. Borrower benefits, which may include interest rate discounts, principal rebates, or some loan cancellation benefits can significantly reduce cost of repaying your loans.

Firstly, real estate investing builds not only income for now (assuming you buy cash flow positive properties), but will also prepare you for a comfortable retirement. As a bonus, you also get capital increase (real estate is said to double in value every 7-10 years approximately), as well as tax advantages. And if this isn’t enough, then you can also use other people’s money to acquire it and pay it off.

Sounds like a winner all around, don’t you think?

Not convinced yet?

Well, how could we use our fluctuating income to our advantage? As farmers, on a good year we could put money in a ‘mortgage offset account’ or just pay extra off loan. This would reduce your interest payments. In a bad year, you can redraw extra equity you have in property, or properties. This investment vehicle can be used totally to your advantage (check with your accountant or tax advisor though).

I really could go on for ages about this brilliant opportunity because I am so passionate about it and it has been our saving grace over last couple of years as well as having comfort in knowing that we’re planning for a secure financial future.

I really hope you have got some benefit out of this article, at least be inspired to check it out further. Good luck in your enterprises, whatever you do, and I hope that this year is a great one for you!