How to Improve your cash flow as the cost of living increases?

Are the cost of living increases tugging at your budget? Are you trying to come up with ways to increase your cash flow? Here are a few suggestions to modify your current expenses to leave more money in your pocket at the end of each month:

·       Ask your bank if they are providing you with the lowest interest rate possible? A simple phone call may instantly reduce your monthly loan repayments.

·       If your bank is not interested in providing you with a cheaper interest rate, consider refinancing your home loan to a bank with a cheaper interest rate.

·       Refinancing your home loan and extending the loan term back out to 30 years. This will reduce your minimum monthly loan repayment. Taking out a variable loan will allow you to make additional repayments without penalty when your financial position increases and you want to contribute more to your mortgage to pay it down sooner.

·       Consolidating your debts. If you have a car loan or a personal loan, you can add this to your home loan if you have sufficient equity to do so. Your monthly repayments will be lower when your debts are consolidated and the interest rate will be lower on the personal loans. If you are handling the lower repayments well, you may choose to pay a little extra each month to pay down that personal debt portion that you added to your home loan.

If you have any questions regarding the above and how much you would reduce your monthly repayments by consolidating debts or extending your loan term, send me a message or call 0414670151.