Consolidate your debts.
Multiple debts can be stressful, both because of the financial hit each month and the need to remember lots of different due dates. By consolidating these debts with your mortgage, you could swap that confusing mix of debt obligations for one simple repayment each month.
Simplify to one repayment
You could take a bunch of loan obligations from different sources and at varying interest rates and replace them with just the one repayment. This won’t eliminate your debt, but it could make it easier to keep track of your finances and where you stand on the path to getting debt-free.
- Use your equity
If you’re a homeowner and have been fortunate enough to build up a decent chunk of equity in your home, you may have an advantage when consolidating your debt. You could use that equity to secure a competitive interest rate for a consolidation loan that is much lower than those usually charged on, for instance, credit card debt.
- Customise your loan
A tailored consolidation solution to your situation could give you the loan features and flexibility that you need. You might want to have the option of making extra lump sum repayments. Being able to do this could help you save on interest over the term of your loan.
Negotiate your current rate.
The rate you started off with may not suit your current situation. I have access to a panel of over 60 banks and lenders and can look into your options to help you save on your repayments.
Get a budget together.
Here are the three fundamentals to achieving money goals, get this right and see what you can cut.
- You can’t fix what you don’t track
Most city-dwelling Australians spend 160% of their income. Yep, you read it right. That makes my stomach churn – and in times like these, it is hurting people. My challenge to you: militantly track 8 weeks of expenses in a spreadsheet, app or manually download the CSV on your last two months of bank statements.
- Swap out one spending category
Completely cut one excess i.e. online shopping or expensive takeaway meals.
Track your adherence to this short-term test daily: use stickers, a spreadsheet, a calendar. Whatever works for you.
- Be in control, be accountable
I can’t do your push-ups for you, but I can be your financial personal trainer. We can schedule a quarterly check-in on your progress.