Expert money moves to survive the Coronavirus outbreak

Polly Fleeting

24 Mar 2020

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As the effects of the COVID-19 outbreak hit home for a lot of Australian families, with many people facing financial uncertainty, reduced working hours or job losses, the reality is it’s time for many of us to make shifts to our current financial set up. 

While the government continues to realise stimulus packages for Aussie businesses and banks are providing some assistance to their customers, there are also ways you can prepare yourself financially for the weeks, or months, to come. 

So with that in mind, here are three expert money moves to keep more cash in your pocket and avoid a Coronavirus money crisis:

Money move #1 - Get a low rate personal loan to tide you through if you're financially strapped but avoid fast cash / payday lenders like a coughing passenger on a cruise ship, as these charge extortionate interests rates (up to 48% p.a.) and ongoing fees. 

Money move #2 - Move your savings into top paying account and aim to save at least 20% of your take home pay over the next few months or more to build a financial buffer for yourself. You can still access rates around 2% by shopping around, to give your savings a much needed boost.

Money move #3 - Reduce your monthly costs by switching your home loan or credit card to pay less interest. A 0% balance transfer card can give you an interest rate breather on credit card debt, while the average big 4 bank home loan customer could save over $250 a month by switching to a more competitive home loan.*

Cheap Personal Loan

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OurMoneyMarket Low Rate Personal Loan
  • Fixed rates from 8.00% (8.21% comparison rate^)

  • Borrow from $2K to $50K

  • Free redraw facility and extra repayments

OurMoneyMarket’s Low Rate Personal Loan fixed rates start from 8.00% (8.21% comparison rate^). You can borrow between $2,000 and $50,000 on loan terms 1 to 7 years. Plus, it has great flexibility to help you save on interest payments from the choice between weekly, fortnightly or monthly repayments to the ability to make extra repayments whenever you like without paying fees. It also comes with a redraw facility as well, so if you need to access additional contributions later on you can. 

Where do I get it? Head over to OurMoneyMarket to find out more >>

Top Savings Account

Promoted

AMP Saver Account
  • High 2.11% introductory interest rate for 4 months

  • No account fees

  • Dual 2020 Mozo Experts Choice Award Winner

Get a high 2.11% p.a. introductory rate for the first 4 months for balances up to $250,000, then enjoy a competitive ongoing rate of 1.05% p.a. Plus the account has no minimum balance requirements and zero fees and collected two 2020 Mozo Experts Choice Awards^ for No Strings Savings and Kickstart Savings.

Where do I get it? Head over to AMP to find out more >>

Low Rate Home Loan

Promoted

ING Mortgage Simplifier
  • 2.78% variable rate (2.81% comparison rate*)

  • No service or application fees

  • Free extra repayments and redraw facility

When it comes to competitive rates and flexible features the ING Mortgage Simplifier has both. Not only does it come with a low 2.78% variable rate (2.81% comparison rate*), borrowers can also make free extra repayments as well as have access to a redraw facility if they are strapped for cash later down the track. And if you hate fees, the good news is there is no application or ongoing fees connected to this loan.

Where do I get it? Head over to ING to find out more >>

Balance Transfer Credit Card

Promoted

CUA Low Rate Credit Card
  • 0% on balance transfers for 18 months

  • Low 11.99% purchase rate

  • $0 annual fee in the first year ($49 after)

From the low purchase rate of 11.99%, 55 interest free days to the 0% balance transfer rate for 18 months, the CUA Low Rate Credit Card has all the features you’ll want for either blasting debt or keeping a low card balance. For the first year, the annual card fee is also waived, after which you’ll pay a low $49. Talk about savings across the board!

Where do I get it? Head over to CUA to find out more >>

^ The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are for the amounts and terms below, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. ^ Based on $10,000 over 3 years ^^ Based on $30,000 over 5 years

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

Want to check out some more personal loans options? Jump over to our personal loan comparison tool or read up on our handy guides for more information.

* Based on a typical owner occupier borrower with a $400,000 home loan switching to the most competitive rate on the market.

^^^For a full list of winners check out our 2020 Mozo Experts Choice Awards for Savings Accounts 

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