4 ways to make the most of covid-19 isolation

Wondering what you can do to benefit your financial situation while in isolation? From consolidating your debts to negotiating rates and budgeting, keep reading for our 4 top tips!

Consolidate your debts

Multiple debts can be stressful, both because of the financial hit each month and the need to remember lots of different due dates. By consolidating these debts with your mortgage, you could swap that confusing mix of debt obligations for one simple repayment each month. 

  • Simplify to one repayment
    You could take a bunch of loan obligations from different sources and at varying interest rates and replace them with just the one repayment. This won’t eliminate your debt, but it could make it easier to keep track of your finances and where you stand on the path to getting debt-free.
  • Use your equity
    If you’re a homeowner and have been fortunate enough to build up a decent chunk of equity in your home, you may have an advantage when consolidating your debt. You could use that equity to secure a competitive interest rate for a consolidation loan that is much lower than those usually charged on, for instance, credit card debt.
  • Customise your loan
    A tailored consolidation solution to your situation could give you the loan features and flexibility that you need. You might want to have the option of making extra lump sum repayments. Being able to do this could help you save on interest over the term of your loan.

Want to learn more? Get in touch.

Get a budget together

Here are the three fundamentals to achieving money goals, get this right and see what you can cut. 

  • You can’t fix what you don’t track
    Most city-dwelling Australians spend 160% of their income. Yep, you read it right. That makes my stomach churn – and in times like these, it is hurting people. My challenge to you: militantly track 8 weeks of expenses in a spreadsheet, app or manually download the CSV on your last two months of bank statements.
  • Swap out one spending category 
    Completely cut one excess i.e. online shopping, or expensive take-away meals. Track your adherence to this short-term test daily: use stickers, a spreadsheet, a calendar. Whatever works for you.
     
  • Be in control, be accountable
    Our team can’t do your push ups for you, but we can be your financial personal trainer. We can schedule a quarterly check-in on your progress.

Negotiate your current rate

The rate you started off with may not suit your current situation. Our brokers have access to a panel of over 60 banks and lenders and can look into your options to help you save on your repayments.

Help you have hardship conversations with your bank

It’s important to understand what your options are in these difficult times, so as your friendly brokers, we urge you not to panic and spend hours on hold with your lender.

Let’s look into your options first — we can help you navigate and understand what your options are during this time of financial hardship. 

Let’s talk. We’re here to help. 

*Disclaimer:Any refinancing/access to home equity is subject to lender imposed terms and conditions including but not limited to loan serviceability, valuations and confirmed capacity to service both any existing and revised lending arrangements. **This document has been created by Loan Market Pty Ltd (ABN 89 105 230 019, Australian Credit Licence no. 390222). It provides an overview or summary only and it should not be considered a comprehensive statement on any matter.You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs. Information included has been sourced from third parties and has not been independently verified. Accordingly, Loan Market Pty Ltd is not in any way responsible for nor provides any warranty express or implied as to its accuracy or relevance.

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