During the boom years, investing was characterised by a culture of heavy debt and borrowing. However, in today’s market, investors should consider taking more control over their finances and debt levels.
It has always been the great Australian dream to own your own home, but many people struggle to pay off their loan and can end up in debt for 30 years or more. Instead of chipping away at a home loan for several decades, the trick to getting out of debt comes down to discipline: creating a smart money management plan and making sure you stick to it. Getting your income working for you and not the bank is the key to debt reduction.
According to loan experts, it is particularly important whenever we enter an environment of lower interest rates, as investors may be tempted to ease up their repayments. Rather than borrowing more, homeowners should take this opportunity to increase their repayments or make additional repayments on their loan.
These simple steps can shave years off the loan term and save thousands in interest.