Parents 'should take care of home loans to cover holiday expenses'

Thursday 10 September 2009

Article by Mozo

Parents should pay more into their low interest home loans in order to save for extra expenses, it has been suggested.

When it comes to forking out for school holidays, such as trips away or childcare, families should be sure to put a little extra in their savings accounts and get ahead with their home loans repayments.

This comes from Mortgage Choice, which has advised households to stay on top of their finances so as not to miss out when it comes to school breaks.

Kristy Sheppard, senior corporate affairs manager at the firm, said planning ahead is essential to stay afloat and "improve the health of your home loan".

"Pay a little bit extra throughout the year to help build a buffer that compensates for rate rises and times when you may have to redraw to cope with additional expenses such as school holidays," she advised.

In this way, families can redraw when a little extra is needed, Ms Sheppard explained.

The company went on to offer a series of tips for families to cut down on expenses, including investing in low-cost entertainment, such as renting movies instead of going to the cinema and cooking for fun instead of getting take-out.

Jennifer Brookhouse, director of Strategy Steps recently told the Sydney Morning Herals that people should adopt a budget in order to boost their savings accounts.

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