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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 tips 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. Borrow from family members

It’s quite possible that your parents are struggling to get 3% returns on their term deposits. If they’re not retired, they have to pay tax on top of that, meaning their returns could be as low as 1.5% after tax! As an alternative, putting extra money from another family member into a separate offset account can have you earning 4% tax-free on the money. Money and family often don’t mix, so this may not be for you. But if it does in your case, it’s a win-win situation.

2. Sell your junk

It’s common you have items lying around the house you never use. They could be big ticket items such as bikes or computers, or smaller things such as they toys and clothing your kids have grown out of. Make a commitment to yourself that anything you sell is going to the mortgage. A clean out every year or two could yield a few thousand dollars which is the same as paying a couple of hundred dollars extra on your mortgage every month. While this may not sound like much, the savings over the life of your loan run into the tens of thousands.

3. Get professional

If you’re a professional, such as a doctor, accountant or engineer, some banks may offer you a cheaper rate. Same goes for some government employees. If you’re not sure of whether your bank offers professional discounts and whether you qualify, just ask. If you manage to get your hands on a professional loan that’s a little cheaper, you’ll pay it off a lot faster!

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