Debt and Mortgage Management

I need help managing my debts and my mortgage

Everyone wants to be debt free on a mortgage as soon as possible. A house will usually cost you 2 ½ times its original purchase price over a 25 year mortgage term.

The banks have made it easy to pay the minimum payment on mortgages and even though we can often pay more, we choose not to. To successfully repay debt one needs to adopt the approach that the term is 10 years, or 15 years and make payments based on this repayment goal. To achieve this you will need to review certain behaviours:

  • If you charge to a credit card and don’t clear the amount fully every month before the payment date, it means you’re paying a much higher interest rate.
  • Spend income on leisure, entertainment and recreation only if you’ve first saved 10% of your net incomes and met all your fixed and essential costs of living. This is a strategy that will see you becoming mortgage free, faster.
  • Follow a working budget and calculate forward your cost of living. Identify large ‘one off’ planned expenses, or accumulate extra capital to meet unexpected expenses.
  • Use your cash flow surpluses, capital and equity to purchase investments and begin your retirement Net Worth accumulation strategy. Investments may generate additional cash flow, income and tax rebates that you can use to accelerate personal debt repayment.

Behavioural change must take place in order for you to change the way you spend and save money.

Don’t apply for a mortgage before you talk to us about debt and mortgage management, it could cost you more than it needs to!

We act as personal banking consultants for our clients and provide advice on all major banking products. By acting in the best interests of our clients we have assembled the best products in the industry for persons serious about becoming financially free. We also tailor personal lending strategies for business premises, accommodation businesses, share portfolio margin lending, business lending, and home equity lending.

If you need help with your debts, send us an email today.