Five Survival Tips for the Way Ahead
With Australia seemingly conquering the initial wave of COVID-19 there seems to be some light at the end of the tunnel.
The economy is opening up and long may this continue, not just for our wealth but also our health. We feel it’s time to start thinking about survival and recovery, in a post Coronavirus world. Below are 5 easy tips that may not only see you survive but thrive!
Review your expenses
With over 27% of Australians now out of work or underemployed* there has never been a more poignant time to put the microscope over your financial situation. You will find online many companies or brokers offer a bank statements service which can categorise expenses to help you spot trends in your spending. It’s a good idea to start with subscriptions as these are usually easy to cancel. There could be significant savings by cancelling services that you are no longer actively using, this includes gym memberships, streaming services such as NetFlix or Spotify, magazine or newspaper subscriptions.
Consolidating credit cards
Personal credit card debt in Australia as of May 2020 is over $40bn** and over 70% of us have an active card in our wallets. Interestingly over 20% of 35-54-year-olds have 3 or more active cards. With the average credit card rate at 19.94% p.a** it is the perfect time to consider refinancing high-interest debts into a low rate personal loan with RateSetter. An amortising personal loan will not only allow you to manage debts more effectively but could save you thousands in interest.
Upgrading of a vehicle or refinancing existing car loans
With a slowdown in vehicle sales and the end of financial year just around the corner, it is an excellent time to consider replacing an old vehicle with a brand new one. Dealerships may be looking to move on stock and you can take advantage of the end of financial year discounts. You could secure a great deal not only on the price of the vehicle but some competitive financing options that are currently available. At RateSetter we have some of the lowest consumer rates, get a quote online today.
You may also have a car on finance that is on a higher rate than is currently available. Interest rates across Australia have never been lower, get in touch with us to see how much we can save you by refinancing your existing car loan.
Home renovations – Personal loan v home loan top-up
With so many Australian’s spending more time at home, it’s no wonder we have experienced a large spike in funding requests for home improvements. Rather than a home loan top-up, you may consider a personal loan which can be more cost-effective and allow you to have access to those funds within 48 hours.
RateSetter products have no early termination penalties giving you the flexibility to pay your loan out at any time.
Taking advantage of the property market
Borrowing has never been cheaper, and with house prices set to soften across most states, now may be the perfect opportunity for you to snap up your perfect home or investment property.
If you do not have the full deposit, or just tipping into LMI territory, a RateSetter personal loan could help bridge that gap allowing you to secure your next purchase sooner.
There are new beginnings on the horizon and the above tips are to help you not only survive this pandemic, but thrive going forward. At RateSetter we are committed to kick-starting our economy and helping every Australian do financially better, together.
To learn more about how RateSetter can help you please check our website or speak to your finance broker.
**Source RBA May 2020 https://www.rba.gov.au/payments-and-infrastructure/resources/payments-data.html