Debt – Take Control in 2022

While we shake the dust off from the year that shook us up, let us take some time to work out some objectives for 2022 to control your debt.

While this year was financially an impactful year for most. As many of us are excited to say goodbye to 2021 and welcome in a fresh new year, some may be wondering how exactly to improve on their current financial situation. 2022 could be the time to take some control back and meet your objectives. With the new year fast approaching, take a few minutes to look at what you want to get out of the new year with your finances, debt and mortgage.

Here are some key steps to ensure you stay on the right track in the New Year.

Rein In Your Spending And Set Some Goals

When you take control over your cash, you can begin to feel a sense of freedom and control in your life. But that empowerment does not come without a bit of sacrifice and discipline. After a month or two of Christmas shopping it may feel a little unnatural to consider a structured budget. However, a realistic budget is one of the most effective ways of achieving your financial goals. You may be wanting to buy an investment property or are just sick of being in debt. Write down some specific and timely goals and work out what it will take to realise these objectives. The New Year is an ideal time to create or re-evaluate your budget, review your expenses, current debts and income. In order to realise your goals, you may need to cull some unnecessary expenses and look at some creative ways of introducing some more cashflow.

Get Rid Of Credit Card Debt

With debt out of the way, your money is freed up to be told where to go. To get ahead, paying down your personal debt should always be a top priority. Christmas is a tricky time to avoid the credit card debt trap and interest can accumulate fast. There are smart ways to tackle debt fast and effectively though, by possibly consolidating your debt, to reduce interest. Consolidating your debt by refinancing allows homeowners to borrow against their home at a far lower interest rate than that of a personal loan or credit card. Making use of the lower interest rate in your mortgage allows to attack personal debt faster and lower your monthly repayments dramatically. However, it is crucial to speak to a qualified mortgage broker, who can compare interest rates, fees and other costs, to ensure you really are making a wise move.

Ensure You Are Getting A Competitive Interest Rate

You may find yourself entering the New Year with some life changes. Perhaps you have recently made the decision to start a family or are considering a career move or even a change of address. It is worth having the conversation with your mortgage broker early to ensure you give yourself time to make the smart move. Switching lenders or products through refinancing may allow you to get a better interest rate, access home equity or make the change from fixed to variable, or vice versa.

After an all time low, interest rates have just started to rise with more predicted, so now is that time to look at refinance. No matter how long you have been with your lender for, this may be an ideal opportunity to take advantage of that opportunity. Speak to your Mortgage Broker to see if it is possible to review your mortgage and make the change to a loan with a competitive interest rate. It will be easier to make the switch between lenders if you’re not on a fixed rate home loan but either way it’s worth getting advice and staying informed on what your options are.

As you ring in 2022 this New Years, do so knowing that there are various options for you to realise your financial goals throughout the year. Speak to your mortgage broker Nestor Ramirez and get informed on the opportunities you have to make this year count.

Call Watson Mortgages on 02 4038 1623 to make an appointment today.

Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product. Licensing Statement: Credit Representative 378816 is authorised under Australian Credit License 389328.