Purchasing your first house, investment property, car, boat or any other object of desire or necessity is an exciting time in anyone’s life, however this often involves putting yourself into debt.
Even if you have fantastic positive cash flow to pay this down fast, managing this debt effectively can dramatically impact your future finances.
It all starts with positive cashflow – after expenses.
If you don’t have this, you need to seriously re-think and re-structure. Educating yourself can be a great way to do this and can open doors and possibilities for increased income.
Other ways of reducing debt faster are:
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Track your spending – Cash-Flow Budgeting
Understanding your spending habits in crucial. By having a family budget to help track this, is an easy way of helping you control your expenditure.
Make small regular extra repayments
Deposit any extra cash inflows into the loan such as tax returns, bonuses, overtime payments. Also planning for regular, small cash injections can have a great impact over the life of a loan.
Switch your payment intervals
If you find that you don’t have the discipline to make extra repayments, then simply switching your payment structure from monthly to fortnightly can help save years off your mortgage.
Make sure you have the right type of loan
Ensuring your loan allows extra repayments without penalty, offset accounts to use your savings or living expenses to reduce your principle, and the ability to fix in portions of the loan to take advantage of lower rates if suitable for your situation.
Don't decrease repayments when interest rates fall
Any changes to the cash rate of the country usually flows on to interest rate changes the banks offer. If the rates go down, you’ll save interest and can get ahead faster by maintaining your regular payments.
Keep your eye on the prize
Watch the forecast term on your mortgage – seeing it go down will motivate you to work even harder.
Find a better deal - Talk to an expert
Statistics show that every 15 months a home loan customer needs to re-look at their loans. There could be changes in rates, fees, terms, economic conditions, as well as the growing equity in your property that should be discussed to maximise your financial position.
Use our repayment calculator to see what additional you could be putting away against your loan.
At Oracle Advisory Group, we specialise in setting up the right platform for your ageing years, keeping things simple for you to understand, and taking the worries away by being a guiding hand throughout the process.
The sooner you start the more chance of maximizing your potential retirement savings to offer the freedom and enjoyment this stage of life should bring you.
Our “complimentary” initial strategy session will help you to understand the many opportunities and pitfalls that exist.
More importantly, how we can guide you ensuring it meets your individual needs.
Contact our Financial Advice and Lending Specialists today and find out how we can help you manage your debt more effectively!
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