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Your home loan repayment is usually one of your biggest monthly outgoings.  Together with your other regular commitments, your outgoings can quickly add up.

But what happens if you can’t meet your monthly bills?  Scary thought, right?

Especially if something unexpected comes along: an emergency plumbing problem, a car breakdown.  Life’s little nasties that can knock your careful planning off course.

Even good news can make radical change to your plan.  Good news:  you’re starting a family.  But bad news:  that means those monthly bills are going to go up.

Then there are real disasters.  You lose your job. Or suffer a major industry mishap.

As we head into the first month of 2018, here are our tips on how to prepare for a rainy day.

  1. Get a emergency buffer
    Make this your first New Year’s resolution: Work out your weekly budget, then set your savings goal to ensure you have enough put aside to get by for a few months. If you can, make extra repayments on all your loans. Round up repayments to the nearest $100. Or try paying fortnightly instead of monthly.We know – it’s a little painful.  But think of the piece of mind for you and your loved ones.

    And remember:  you could earn more off our savings. Try a high interest online savings account like Easy Street’s.

  1. Cut your commitments
    We know you want it all and you want it now!  But using loans to get things you don’t really need in a hurry can be your financial undoing.Put simply, the less commitments you have, the more likely you’ll be able to see out a rainy day. So aim to minimise your debts, even if this takes changing some habits. Don’t finance that new car 100% – use some savings and think of the interest you’ll save. It can go into your emergency fund.If your credit card is maxed out, pay it down and DON’T be temped to get another.
  1. Get a repayment holiday
    If you’ve been regular with repayments and managed to get ahead with your home loan, ask about a repayment holiday. With some lenders, if you are in advance on your loan you may be able to take a break from making repayments, allowing you breathing space to tackle unexpected bills and get back on track.This is a great reason to get ahead on home loan repayments.  It can quite literally be money in the bank on a rainy day…You can either make extra repayments or, use an offset account.When you park your money in an offset account, interest is calculated on your home loan’s outstanding balance, less the balance in your offset account. This saves you interest on your loan, plus you can still access your savings whenever you need it.

    You can also consider fixing your interest rate to give you certainty that your repayments will remain the same for a period of time, making budgeting much easier.

    All home loans from Easy Street offer a 100% offset account and free redraw. Find out more here >

  1. Check your insurance
    We know – it sounds obvious. But you’ll be surprised how many don’t do this. Make sure you have enough cover for your car, home and health care if something does go wrong. Sure, ongoing insurance costs can add up, but at least you’ll have the peace of mind you’ll be covered when you need it.

At Easy Street, we’re here to help
We believe that managing your money should be easy. At Easy Street, you’ll find all the savings and loan products you need to put our tips in to action. Visit www.easystreet.com.au to find out more.

 

All lending subject to lending guidelines. Terms and conditions, fees and charges apply – details available on application.

This information is general advice only and does not take into account your objectives, financial situation or needs (your “personal circumstances”). Before deciding whether to buy any product you should consider your personal circumstances. You should read and consider the Terms and Conditions when deciding to use any product (terms and conditions, fees and charges may apply). Our product Conditions of Use are available on our website.

Easy Street Financial Services is a division of Community First Credit Union Limited ABN 80 087 649 938 | AFSL and Australian credit licence 231204 | BSB No 512 170