For many Australians, financial concerns will affect us at some point in our lives.
An annual report produced by the Centre for Social Impact, in partnership with NAB, found that one in eight adults in Australia (12.6 per cent) experienced severe or high financial stress, up from 11.1 per cent over the past year.
While there are no quick fixes to reduce financial stress, there are three options that could help you regain control of your finances and become debt free sooner;
1. Debt consolidation
If you’re making repayments on multiple loans to different lenders each month, consider rolling everything you owe – on personal loans, credit cards, and more – into one easy-to-manage loan. This will help reduce your financial stress as you’ll only have one simple payment to make, instead of multiple payments coming out of your account. Debt consolidation can potentially reduce the total amount you need to repay on your loan each month, which can provide further financial relief. If you’re looking to consolidate, make sure to look for a loan with the best possible interest rate and check for any penalties: For more information read our debt consolidation guide.
Another option to consider is refinancing your home loan. If you have enough equity in your property you could possibly roll your debts such as credit cards, personal loans, and car loans into your home loan. As home loans generally have much lower interest rates than credit cards, utilising these facilities will not only save you money but potentially allow you to gain access to new loan features and streamline your debt into one stress-free payment.
But don’t just take our word for it…
Cailyn and her partner who’ve been members of MOVE Bank since 2009 have been paying off their home loan, MOVE Bank personal loan at 13.74% p.a. and a car loan from another financial institution at an incredible 36.00% p.a. interest! Combined their monthly payments were a whopping $1,600 a fortnight.
Here’s how Jacqui - MOVE Bank lending specialist helped…
Jacqui discussed with Cailyn about her situation and was able to consolidate all three loans into a new MOVE Bank Economy Home Loan.
With an interest rate of 4.13% p.a. (4.22% p.a. comparison rate*) Cailyn saved thousands of dollars in interest over the life of her loan. Slashing her fortnightly repayments to $600 per fortnight!
“It’s so much better,” said Cailyn when we asked what this change had meant to her
“I honestly don’t know how we were managing to live”.
They were even able to renovate their bathroom! To find out how to read on.
3. Financial planning
At MOVE Bank, removing financial stress from our members’ lives is our top priority. Many members are aware that they need professional financial advice to plan for the future, but are unsure of where to start.
That’s why we’re proud to offer our members the services of Bridges, one of Australia's leading and highly respected wealth management groups.
The aim of financial planning is more than just managing your savings and investments. It's about helping you to plan for a future lifestyle that is as good as it can possibly be.
No matter what stage of life you're at, the advice of a professional financial planner can make a big difference in helping you achieve your financial goals by developing a plan that will work for you.
To discuss strategies for getting on top of your finances contact us today on 1300 362 216 or enquire online.
This blog post is for general information purposes only and is not intended as financial or professional advice. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product or other professional advice. You should seek your own independent financial, legal and taxation advice before making any decision about any action in relation to the material in this article. Railways Credit Union Ltd trading as MOVE Bank ABN 91 087 651 090. AFSL/Australian credit licence 234 536.
* Fees and charges apply. The comparison rate is based on a secured loan of $150,000 for a term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Bridges Financial Services Pty Ltd (Bridges). ABN 60 003 474 977. ASX Participant. AFSL No 240837. In referring members to Bridges, MOVE Bank does not accept liability or responsibility for any act or omission or advice provided by Bridges or its Authorised Representatives. Bridges is part of the IOOF group.