Trim down at Christmas
Most Australians splurge during the festive season with boisterous feasts and oodles of presents. But to have a good time, is so much expense truly necessary? This Christmas, why not clear debt rather than create it?
Christmas holidays can present quite a challenge for those managing a mortgage, as well as those looking to enter the real estate property market in the new year.
It is important to ensure excess Christmas spending did not affect the ability of people to meet loan repayments. If you stick to your budget for food, beverages, presents and travel costs over the festive season you will ultimately reduce the potential for more personal debt and save money during what is often the most expensive time of year. Not only that, if you have a mortgage you can contribute leftover savings from the Christmas budget into your home loan, which will save time and money off your loan and can help you cope with further interest rate rises.
Of course avoiding debt and maintaining a good credit history is important at all times for all borrowers, both potential and existing.
When applying for a loan lenders will take into account your credit history and assess your ability to budget and manage repayments.
Avoid silly season spending with some of these tips:
Create a financial buffer throughout the year in preparation for the summer holidays. By repaying your mortgage above the required amount you will have more funds at your disposal, if need be.
Revisit your purchases from the last year and make a list of things that were not consumed, were left over or unused.
Then, create a well thought out detailed shopping list before you arrive at the shopping centre, to save you time and money spent on unnecessary items.
Plan for the year ahead and budget for your next summer holiday spending.
Organise your repayment strategy and increase your contributions when you can. Start preparing your new year budget and, based on this year’s festivities, decide what you can cut back on for next year.
Simply stop and think. Sometimes a minute of consideration is enough to prevent impulse buys.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
