Money tips to help you survive the silly season
Monday 11 Dec 2017
Most of us know how expensive the holiday season can get – travel, entertainment and gifts quickly add up. Here are some tips to help you borrow money this silly season.
Credit cards can be great for managing monthly cash flow, giving you instant access to relatively small amounts of money. Most have interest-free periods so if you repay quickly, borrowing is at no cost.
But if don’t pay off credit cards on time, the interest can add up fast. Also, be wary of introductory credit card offers that advertise low or zero balance transfer rates for a short-term, as the rate will almost certainly jump up.
Personal loans can be useful for purchases of up to around $50,000. Repayment is generally between one and seven years and automatic payments from your bank account, usually fortnightly or monthly, can be arranged – useful if you find it difficult to budget. Make sure your loan lets you make extra payments without penalty.
Home loan top ups
Another way to borrow larger amounts of money is through your home loan. You can do this either by applying for a home loan increase (a top up) or by withdrawing money you’ve already paid into your home loan (a redraw). The advantage of using your home loan is the money you’re borrowing is being repaid over a very long period and at a lower interest rate to a personal loan or credit card. However, if you pay off the loan over a long period, the total amount you pay in the long run could be much higher.
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