Over the past 30 years, Australians’ household debt has increased. According to the Reserve Bank of Australia, our household debt-to-income ratio has risen from 70 percent in the early 1990s to around 190 percent today.
Being retrenched from your job can be hard to accept. It is the sudden shock that catches most people unaware but try not to take it personally. Redundancy is usually not about your personal performance; it’s the performance of your employer’s business, the industry sector in which you work, or even the global economy.
Refinancing your home loan to take advantage of a lower interest rate might save you money. Before you switch, make sure the benefits outweigh the costs.
Not so long ago one of the most effective, low-risk wealth creation strategies was to use spare savings to pay down a mortgage, either directly or via the well-disciplined use of an offset account. If your mortgage interest rate was 8% per annum, that’s the effective, after tax investment return this strategy delivered, substantially reducing the term of the loan and delivering big savings on interest.