11 WAYS TO EASE MORTGAGE STRESS
1. Look for spending cutbacks You might choose to spend less on travel, dinners out or gifts for grandchildren, but also check for “lifestyle creep”, suggests financial adviser Helen Baker, founder of On Your Own Two Feet. When interest rates were low and money was cheap, you might have got used to a certain lifestyle, but now might be time to check if you really want, or need, everything you’re paying for. “It’s almost like a value conversation,” she says. “It’s about making choices, as small expenses can really add up.” 2. Examine your savings Older Australians are traditionally good ‘rainy day’ savers, but now might be the time to realise a storm is on its way. That could mean considering spending the kids’ inheritance, or taking advantage of any redraw facility on your mortgage. “You may have made extra payments on your home loan to reduce the amount of interest you’ll have to pay, but you can usually access that money when you need to,” says Adrian. 3. Pay your mortgage weekly Even if your salary or wage is paid monthly, you could consider paying your mortgage weekly, suggests Marisa Broome, certified financial planner and principal of Wealthadvice. “That extra money reduces the interest you pay every day, and over the life of the loan,” she says.
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SEPTEMBER-OCTOBER 2023 DARE
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