Increasing input in savings accounts can help avoid debt

Mozo

Tuesday 13 October 2009

Putting away a little extra every month into a savings account could potentially help people avoid debt.

This is according to Lisa Montgomery, head of advocacy at Resi Mortgage Corporation, who spoke to News Limited concerning the ways in which consumers can steer clear of getting into financial trouble.

Saving too little can be a potential pitfall, according to the article. In fact, it was suggested that people should reduce the amount they spend on non-essentials and put the rest away.

"The simplest way to avoid unwanted debt is to prepare for unexpected expenses by reducing your discretionary spending," the piece advised.

In addition, a budget based on income and spending could be a good way to organise where a household’s money is going.

Furthermore, getting advice on mortgages – including low interest home loans – from a professional could help individuals understand the basic elements of the products and make sound financial decisions.

According to new research from Nielson Online, some 9.6 million Aussies checked their savings accounts online in September.

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