Play it Safe This Holidays with Loan Repayments

Summers in Western Australia mean buying great gifts, finalising travel plans and arranging catch ups with family and friends.

The last thing we want to be doing whilst soaking up good company and sun is worrying about our finances. With interest rates rising and the prospect of more to come, worrying seems the only thing we can do.

We’ve put together some tips on how to play it safe with loan repayments through the festive season:

Redo your budget for today and tomorrow
Now’s the time to revisit your budget and prepare a new one for the summer holidays. A budget should be reassessed regularly, especially if you have a variable rate home loan. With the financial landscape changing on a regularly basis, it is important to consider all possible activities summer will bring and plan for them now.

Back to the future with loan repayments
No one can predict when the next rate rise will happen, but being prepared will make it a little easier to take. It is sensible to assume rates will be at least one per cent higher tomorrow so set today’s budget in motion accordingly. It’s worth the peace of mind.

Let your lender do the remembering
Many lenders allow you to set up automatic home loan and debt repayment well into the future, so you don’t have the worry of remembering to transfer money each time. Remember though, you will need to increase your repayment amount if you have a variable interest rate that increases.