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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. Creep up your repayments

When things happen gradually, they can easily go unnoticed. We all know that it’s a good idea to increase your mortgage payment. But rather than a drastic increase, why not get into the habit of increasing your repayment by a small amount on a regular basis? It’s quite possible that you won’t notice an extra $50 a month (or $11.53 per week), which means by the end of the year you could be paying an extra $600 per month off your home loan. That’s going to save years off your loan, and tens of thousands of dollars.

2. Get a reality check on value-add features

It’s great to get lots of value-add features on your home loan, but do you actually use them all? It’s silly to pay $400 per year for a professional package, when a $5 per month account fee on a single account could be adequate for your needs. If you don’t use the credit card or the extra bank accounts, check to see if you’re getting value for what you’re paying.

3. Make the most of balance transfer credit cards

Do you have credit card debts you’re thinking of consolidating into your home loan? It’s a great idea to get the interest cost down and allocate more of your funds towards paying off debt. But how about considering a balance transfer credit card? If you use them sensibly, you might be able to get 0% interest for 12-18 months. On a $20,000 debt, that’s $1,000 in interest that you’re saving and can put towards your home loan. If you’re really organised, you could roll your debt over to another card at the end of the interest-free term and start the process again!

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