Even though your financial strategy should be for the long term, there are things you can do each day to help you achieve your goals sooner. Here’s #1:
If you’re juggling a mortgage and credit cards, plus other debts like a car loan or personal loan, you probably feel like most of your income is being swallowed up by interest payments. But don’t despair: here’s what you can do right now to knock your debt on the head once and for all.
Take a few minutes to write a list of all your debt amounts and their interest rates. Then, reorder the list, putting the debt with the highest interest rate at the top. This is the one you should focus on paying off first so you can minimise the amount of interest you’re adding to your debt. You might also want to consolidate all your credit card debts on a single card that offers the lowest interest rate.
Where you have some debt that is tax-deductible and some that is non-tax deductible, paying off the non-tax deductible debt first can also help to save you tax.
If you have a home loan, chances are you’re expecting it to take years or even decades to pay off. But remember, every bit extra you put into it now will help you pay it off sooner. And whenever you chip away at the principal amount, it also reduces the interest you have to repay.
ASIC’s Mortgage Calculator at moneysmart.gov.au is a handy online tool that shows how many months or years you could slash off your home loan, simply by changing the amount or frequency of your repayments.
Your Financial Advisor can assist you with finding the best ways for you to pay off debts. Some may also be able to help you find better financed loans.
Matthew Wood, Senior Wealth Advisor and Director, can assist you with both aspects. Start reducing your debt today!
Get In Touch
Disclaimer: This article has been prepared by Count Financial Limited ABN 19 001 974 625, AFSL 227232, (Count) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124.
Information in this article is based on current regulatory requirements and laws, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Count, its related entities, agents and employees for any loss arising from reliance on this document.
This document contains general advice. It does not take account of your individual objectives, financial situation or needs. You should consider talking to a financial adviser before making a financial decision.