Three more tips to pay off your debt faster
Continuing from previous months, here are our next three tips to pay your debt off faster. These aren’t presented in any particular order because everyone’s situation is unique. Just take the ones that work best for you and if you’ve got any questions, feel free to reach out to us, or ask your financial or mortgage adviser.
1. Consolidate your debt
It’s relatively common for people to have either a car loan, personal loan or even some credit card debt. Chances are you’re paying more in interest on these loans than what you are on your home loan, often up to 20 percent or more. If you have a home loan and available equity, it can therefore be a really good idea to use an increase in your loan to pay off and consolidate all your other high-interest debts. When you do consolidate your debts, just make sure you put the money you’re saving every month back into paying off your home loan rather than spending it! That way, you’ll be paying off more of your principal debt, and over time, less in interest.
2. Review fees and charges
You may be surprised to know that banks are often flexible with the fees that they charge, so it’s worth seeing what you can negotiate or restructure. While a saving of $10 per month may not sound like much, on a 25 year home loan this saving adds up to $7,779.
3. Try and pay cash for renovations
Rather than take out a loan for renovations or repairs on your property, why not set a savings goal? If you want a new kitchen that is going to cost $24,000, how about you try and find an extra $1,000 per month over two years and save up? Rather than having a home loan that is $24,000 higher, you’ll have the same level of debt and be well on your way to paying your loan off sooner.
Speak to our team today to see how you can achieve your financial goals.
One of our mortgage brokers will contact you to discuss the following:
- Get to know your financial objectives
- Help you to understand your borrowing capacity
- Take you through how we can assist you with your finances
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