Regular readers of this blog and website will know that we are not big fans of the big financial institutions when it comes to the costs involved with using their services or approaches to investment. However they do produce some useful advice for consumers which is especially helpful when you don't have to pay anything for it.
Today I have come across some pages on MLC's (owned by the National Australia Bank) website. The pages look at the following strategies to pay off debt sooner:
- consolidating debts into the lowest cost option (eg credit cards and personal loans consolidated into the homeloan)
- using emergency cash reserves most effectively - most of us want cash stored away for a rainy day. Using an offset accpount or redraw facility makes good sense for this purpose.
- making the most of your cash flow through increasing the frequency of payments, reducing living expenses, depositing your entire salary into the loan account, using a credit card to pay most of your expenditure but making sure this is paid off in full each month.
For those in this stage of your life it is well worth taking a look at MLC's website for more details - Pay off your home loan sooner