How Australians can save money at Christmas time and pay off their loan sooner
Announcement posted by Smartline 12 Dec 2016
A 2016 study by Money showed that nearly 1 in 4 Australians are not only up to date with their mortgage repayments, they are ahead on their payments by up to 12 months.
With interest rates at historic lows, it’s a fantastic time for people with home loans to think about getting ahead on their payments as an insurance policy for the years ahead.
Even a small one-off payment at Christmas time means that you can get ahead and reduce the amount of interest charged on your loan each month.
Justin Smith, Principal of Smartline Mortgage Brokers Rockingham, says that doing everything you can to avoid credit card debt and looking for bargains can make a big difference to your end of year budget.
“Christmas time is an important time to revisit your budget and make sure you stick to it.
Try and pay cash for everything if you can't help yourself as it makes the purchases seem more expensive when you’re handling the money. If you are very good at being disciplined, then using a credit card is fine as long as you pay off your credit card in full when it's due,” Justin said.
Justin says that even transferring money to your home loan offset account while you look for the perfect gift can make a difference on your loan.
“While you are using the bank's credit card money, you can put the money you have saved/budgeted for Christmas into your home loan or offset account so that you will save interest on your home loan.”
Justin’s 5 tips for saving money over the silly season:
1.Try and look out for specials, even if it means buying things earlier.
2. Don't try and leave your shopping too late because you could be paying full price.
3. Don't forget you can also save money by buying items online but make sure you leave enough time for delivery.
4. When considering buying gifts for family and friends, don't think you have to buy the most expensive present. The whole idea of giving a gift is the thought behind it. The more you can save, the more you can reduce your debt.
5. January is a great time to come in and have a chat to a broker about consolidating debts and to make sure you are not paying too much on your home loan.