Archive for the 'Overcommitted' Category
Simple Ways to use your tax return
Author: adminAustralians should use their tax return to reduce debt rather than spending it frivolously, the nation’s largest credit union says.
Credit Union Australia (CUA) acting chief executive Rob Nicholls said consumers should repay existing debt in the current economic climate or invest the tax return for future growth.
“While those shoes or new pair of jeans may be a `must have’ today, there are better ways to spend a tax return that could provide you with an endless shoe or jeans collection in years to come,” Mr Nicholls said.
There were obvious ways for Australians to use their tax return including to reduce debt, Mr Nicholls said.
“It’s amazing how peacefully you will sleep when you don’t have a $5,000 credit card debt hanging over your head,” he said.
Recent data from the Reserve Bank of Australia (RBA) confirm consumers have increased their restraint with spending and subsequent levels of debt.
The total balances outstanding on credit and charge cards fell one per cent in March, while the average balance on a credit card, $3119 in March, grew by one per cent over the past year, RBA data revealed.
This was the slowest annual rate of growth in credit card balances since records started 14 years ago.
Repay any interest free loans, particularly those offering 12-month interest free terms when buying furniture or whitegoods, Mr Nicholls said.
“Some people are unaware that once this term has expired a large interest rate is usually applied to the loan, which can end up costing an individual much more than the original cost of the item,” he said.
Mr Nicholls said consumers should open an online savings or cash management account to take advantage of the higher interest rates on offer.
“Such accounts are great because they allow you access to your funds whenever you like,” he said.
Buy only essential items and avoid spending the tax return on conspicuous consumption, Mr Nicholls said.
“Tax returns can come in handy for necessities such as dentist bills, school or uniform fees, a car registration or car service,” he said.
“Alternately you could use it to start your Christmas shopping early.”
AAP
8 Simple Ways to Save!
Author: adminThe recent drop in variable home loan interest rates can see some customers saving up to $100 each month on mortgage payments ( dependant upon loan balance & interest rate) however there are other ways to maximise savings!
1. Advance repay- use the savings to pay off debts sooner by making additional repayments on the mortgage or other debts.
2. Consolidate - amalgamate debts into one simple & easy loan facility. This could potentially reduce monthly repayments.
3. Budget - establish a budget for each pay period to plan on how to use your money. While ensuring savings for holdiadys or christmas.
4. Make it regular - set up a Direct Debit payment that co-insides a day after your pay period. This helps to ensure no late fees.
5. Plan & Research major purchases - investigate and compare prices on major purchases. The Internet may help you research.
6. Buy Pre-loved - purchasing preloved or second hand can save a great amount on money. For example according to www.buyingadvice.com a new vehicle will depreciate by 15-20% in the first year alone!
7. Invest in high interest savings
8. Use rewards card - use store rewards casrd to save money on groceries or petrol.
July 22, 2008 12:00am
MORE Queenslanders than ever before are defaulting on their mortgages and losing their homes to the banks, caused by high interest rates and petrol pain.
State court records show the number of property repossessions has escalated in the past few months and housing experts blame rising petrol prices as much as interest rates for the spike in cases around Brisbane’s urban fringe.
Records show the number of repossessed residential and commercial properties hit a record 1019 last year and continued at the same rate – about 85 a month – until May.
But a Courier-Mail search of electronic court files has revealed the state’s Supreme and District courts handled 100 property repossession cases in June and another 83 cases by July 17, with two weeks of the month still to go.
The figures show a majority of the recently surrendered homes were in suburbs surrounding Brisbane and on the Gold Coast.
Browns Plains couple Robert and Bettina Bengtsson have to come up with a seemingly impossible sum of money within days or have their Browns Plains home repossessed.
Aged 31 and 27, with a nine-month-old baby to look after, the Bengtssons have already cashed in their super, looked for higher-paying jobs and tried to start a business.
But they are still about $14,000 behind in their mortgage payments, which they have defaulted on numerous times.
Mr Bengtsson said the nightmare started when they both lost their jobs. Mrs Bengtsson was pregnant when she lost hers.
“Everything was going great and then the company I was working for decided they were going to close down nightshift, so I took an involuntary redundancy and my wife, because she was a casual … they just said she wasn’t needed any more,” Mr Bengtsson said.
“When we first got the house it was only $437 a week, so we were paying $500 a week.
“And now it is up to about $550 a week, so it has jumped over $120 in those two years.
Bray Park, Scarborough, Narangba, Alexandra Hills, Kingston, Browns Plains and Thorneside are the top targets for repossessions in Brisbane, while Carrara, Arundel, Ormeau Hills, Currumbin, Tallebudgera Valley, Runaway Bay and Surfers Paradise were some of the affected suburbs on the Gold Coast.
National Shelter chairman Adrian Pisarski said the figures demonstrated the compounding effect of high petrol prices on already financially stressed homebuyers.
“It always seems to be in areas poorly serviced by public transport,” he said.
“People there are double-whammied. Their housing costs are going up and their transport costs are very high because they are car dependent.
“I think many households would cope with one or the other, but not both.”
Housing Industry Association chief economist Harley Dale said a higher rate of mortgage defaults was expected, given the increased burden of interest rates and petrol prices.
HIA calculations show the repayments on a $250,000 loan would have increased by $449 a month in the past three years, while the monthly cost of petrol for an average household would have risen by $150 in the same time.
It has been estimated that about 160,000 Queensland households are experiencing mortgage stress.
“There is no doubt it is a much more difficult environment out there in 2008 than it was in 2007,” Mr Dale said.
Mortgage and Finance Association Queensland president Bruce Mawson said stalled property values had exposed some stretched homebuyers, who had been in the habit of using the equity in their home loans to pay off other debts.
He urged anyone having trouble making their mortgage repayments to talk to their bank as soon as possible.
How to Work Out if Debt Consolidation is for me?
Author: adminYou want to keep your home, but with rates on the move, and your personal debt getting out of control it will only get harder from here on.
Debt consolidation or debt refinance may be an option. What this does is that a lender will refinance all your debts with whomever the credit provider is, and will refinance these into your mortgage. What’s the benefit? A couple outcomes –
1- single repayment,
2- you have the chance to reduce your monthly repayments - which means more cash in your pocket!!!
This is not always going to be as easy as walking into your existing mortgage lender and asking for a consolidation. I’m sure they will be willing to help however they will have various rules & limitations which may not fit all your needs or goals. There are lot of funders out there all with different rules to play by. The value of your security or house may well be a factor along with your income type and level. The reason you are in a particular situation may well determine which lender will provide a better option. It may be of assistance in engaging a finance broker to work through the best options for you. This is especially the case if you have been having trouble keeping up with it all and have late payments.
In a lot of cases the refinance and consolidation of all your liabilities like outstanding rates, tax debt, store cards and alike may not be able to be renegotiated in total & therefore other strategies may need to be considered in conjunction with the refinance.
All these approaches should only be considered for an intermediate period. It may take 12-24 months to re-engineer your financial position for the future at which time a new set of strategy’s are determined and adopted to meet your next series of financial goals.
So if you think you can survive better with getting your repayments down before rates continue to go up, give Finance Know How a call or email, or better yet you can talk to Howard online!
Chat Live to Team Know How
Author: adminYou want a straight answer about your finances - But finding it hard to get one? Why don’t you chat to Team Know How live, and get that answer straight up?
Finance Know How will provide you with solutions for all your finance needs - from debt consolidation, to refinancing, to providing you with the answers for your development funding, to financing your cars or equipment - both private and business. Team Know How specialises also Small Business Finance - giving back that cash flow you need to run day to day!
Check to see if Howie is online? If he is - he is a good bloke - just ask him!
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