Mortgage holders urged to make New Year's resolution

Wednesday 05 January 2011

Article by Mozo

Aussie borrowers have been urged to use the New Year as an opportunity to get their finances in order.

Mortgage holders urged to make New Year's resolution

Jonathan Philpot, wealth management partner at HLB Mann Judd, suggested that putting together a budget or "cash flow forecast" can be an important means of managing expenditure throughout the year.

Speaking to the Sydney Morning Herald, Mr Philpot said that this budget strategy could also be used to review dept repayments.

"If you are making extra payments on your mortgage but have a credit card debt, stop making the mortgage payments and reduce or get rid of your card debt," he said.

"Your mortgage interest rate is likely to be around eight per cent while it is probably nearer to 16 per cent on your card."

Consumers struggling with repayments could also choose to compare home loans and consider refinancing. According to a recent investigation by the Daily Telegraph, there was a sharp drop in the number of people applying for a federal government first-homebuyer grant last year as the incentive was wound back.

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