As the RBA keeps interest rates on hold, now is a perfect time to review your finances. Here are three tips to better manage your debt.
1. Build a manageable budget
As discussed in last week’s blog, formulating a realistic budget will allow you to factor in ongoing and regular expenses. If you are a first home buyer you may not be used to making regular debt payments. An effective budget will factor in all of your regular spending habits, showing you how much you spend each month and how much you can save.
2. Review your mortgage annually
All borrowers should review there mortgage on an annual basis to make sure they are on the best product currently available to them.
With interest rates currently at a low point, the mortgage product market has never been so competitive. Lenders are always looking to edge out competition by offering incentives and discounts. Meeting with a mortgage broker will allow you to get expert advice and make sure that you are on the best product that suits your current needs.
3. Review your spending habits
Generating a budget will allow you to notice what exactly you are spending your money on per week. By reviewing your spending habits you may be able to identify habits that you can either eliminate or scale back.
By identifying these habits you may be able to save yourself a considerable amount of money per month in turn making your debt repayments easier to manage.
Your Mortgage Choice broker can assist you in reviewing current financial position. If you need any assistance in this matter please don’t hesitate to call us on 02 9358 4855.