2011 personal finance plans of Australian mortgage holders
It is looking likely that males with home loans will outdo their female counterparts when it comes to re-jigging their personal finances this year, according to Mortgage Choice's latest annual Consumer Sentiment Survey*.
Despite predicted interest rate rises and increasing living costs, we found more than half the country's female mortgage holders (51%) had no plans to make changes to their financial situation in 2011 or were unsure if they would*. In comparison, more than three in every five (61%) male mortgage holders plan to make changes.
Everyone with a large debt commitment should review, at the very least, that commitment and their budget every year.
Regularly reviewing and/or making adjustments to suit the ever-changing economic landscape and financial product markets are essential to maintaining a healthy household budget. It will also build your confidence in your ability to manage debt commitments.
Passive borrowers who don't give their finances a health check at least once a year may be missing out on everyday and home loan savings. This means less cash flow for repaying debt quicker, capitalising on other investment opportunities and treating yourself.
Of the mortgage holders surveyed who were planning personal finance changes in 2011, these were the most popular intentions:
|Top 10 personal finance plans for 2011||Females||Males|
|Review my budget||66.2%||71.2%|
|Review my mortgage/s||60.9%||61.3%|
|Cut back on my spending||56.4%||49.7%|
|Pay off my credit card/s||45.1%||41.1%|
|Refinance my mortgage/s||35.3%||27.0%|
|Increase my debt repayments||22.1%||18.8%|
|Take out another mortgage||16.6%||20.3%|
|Top up my mortgage||19.0%||16.5%|
|Reduce my debt repayments||19.6%||12.0%|
Did you find it interesting/surprising that males tend to be more proactive about their finances? Do you think it's worthwhile reviewing your home loan arrangement at least once a year? Let us know by leaving a comment below.
If you want to review your home loan arrangement, and are prepared to make changes if need be, we're here to help. Make an appointment with your local Mortgage Choice broker now.
*The Mortgage Choice 2010 Consumer Sentiment Survey of 1,061 Australians was commissioned to market research company Ticketek Insights and completed in early November, prior to the cash rate rise.