You've spring-cleaned your home so how about your finances?

Written on the 26 August 2015 by Astra Financial

Spring is here! I love this time of year, as I sit in my garden thinking about the new life beginning, baby birds will start to appear, buds and new growth on trees and, of course, feeling so alive with the endless possibilities ahead!

It's also the start of a new financial year. How many people have the time to sit down and spring-clean their finances the same way they would clean their homes?
If you've had your home loan with your current lender for more than a couple of years, it's likely you're not getting the best deal. It's a normal part of business with most lenders; they offer you a special package to get you in the door and then, gradually over time so that you don't really notice, the special benefits dwindle.

Some things to consider:

  • Are you paying more than you need to?
  • Is your loan product still meeting your needs?
  • Is your lender offering you the service you expect?

You are unique in your requirements and goals and it's important for a lender to listen and understand you so that you can be offered a product that moves you towards your goals. Be aware though, that goals and requirements change over time and what was important five (or even less!) years ago, isn't necessarily so important now.

Over time, with busy working families, other debts can build up. Budgeting is vital but it's also about making the most of your outgoings each month. Recent clients of ours had a home loan, two credit cards near their limits, a car lease, car loan and a personal loan for an amazing family holiday they took a couple of years ago. Very common these days but, with some re-organising of their finances, we were able to reduce their outgoings by $1,600 per month! They are by no means unusual and their circumstance give you some idea of how things can be improved. What's more, they can use some of this saving to plough back into their home loan and have it paid off in a much shorter space of time than expected! Pay off your home loan in less time AND have spare cash at the end of the month? No-brainer!

Did you know that a typical credit card with a 21% interest rate and $10,000 balance being paid off with minimum payments of 2% of the balance per month would take nearly 80 years to pay off according to the ASIC's MoneySmart calculator? ( Reorganising your finances and maintaining the same minimum payment could pay off that $10,000 in under five years!

Circumstances vary so it's important that everyone with debt has a financial health check at least every 12 months. You might think that nothing has changed in that time? Wouldn't it be good to know for sure?

Contact us for a free home loan health check or more infomation, you owe it to yourself!

Author: Astra Financial
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