Take charge of your finances in 2020

Improving your financial position is a popular New Year’s resolution for many of us. However, it shouldn’t come down to blindly maximising your debt repayments or regular savings into a bank account. Being educated about your options can put you in a much better position. Here are four simple steps to take control of your debt repayment strategy in 2020.

1. Establish a clearly defined goal

   3% of people are more successful than the other 97% just by writing down their goals.

   Have a clearly defined intention, an action plan and relevant timeframe to achieve your goals.

   This could be as simple as increasing your repayments by $100 per week and ensuring that in 6 or 12 months you can see the difference in principal and interest repayments.

2. Build your wealth through debt repayments

   Repaying your mortgage is not the most enjoyable aspect in life, we can think of many other ways to spend our surplus income.

   However, the benefit is achieved through taking advantage of the current low interest rate environment to get ahead financially and build equity within your home.

   This effectively is the value of your property, less the amount owned to the bank. Once you have equity, it unlocks many opportunities to start creating wealth.

   Speak with a Financial Planning professional to understand all your available options.

3. Check in on your current deal

   Do you have features in your existing loan contract that you don’t use and are paying for?

   Do you need or understand: redraw facility, loan splits, offset accounts, fixed interest rates, linked credit card facilities?

   Does your homeloan have the cheapest interest rate and lowest fees available?

   Now is the time to consider does your loan serve your current financial arrangements.

4. Add value to your existing properties

   How can you add value to your existing property so that a lender or property valuer would increase the current value of your property and therefore, unlock the value within your home?

   For example, if your property increases in value by $100,000, your lender could potentially loan up to 80% or $80,000 of additional funds to be used for home renovations, assisting the purchase of an investment property or establishing an investment portfolio, thus further increasing your wealth position.

Take control of your debt repayment strategy today and book a complimentary Home Loan Health Check with Fortuity Lending. Book here or call to make an enquiry. 

The publications by Fortuity Lending are for general information only and are intended to assist you in understanding the nature of the lending and property markets. The information contained in this editorial is for Australian residents only. This editorial does not consider your personal circumstances and has been prepared without considering any of your individual objectives, financial solutions or needs. Before acting on this information, you should consider its appropriateness, having regard to your own objectives, financial situation and needs. This editorial does not constitute and should not be relied on as financial or investment advice or as recommendations (expressed or implied) and it should not be used as an invitation to pursue any investments, investment services or lending services. No investment decision or activity should be undertaken on the basis of this information without first seeking qualified and professional advice. Fortuity Lending disclaims any and all duty of care in relation to the information and liability for any reliance on investment decisions, claiming the use or guidance of this publication or information contained within it.