The Mortgage Reduction Expert

Budgeting is one of those things that we all know we should be doing. Unfortunately,

the honest truth is that 98% of us don\’t do it properly and as for the 2% of

Australian\’s that do budget well …..they aren’t very much fun at parties !

The key to setting a budget and actually sticking to it is one of Self Discipline.

Self Discipline is defined as \’doing what needs to be done, when it needs to be done

regardless of whether or not you feel like doing it.\’

Hence, why we are all so hopeless at it, getting ourselves into payday loans with extremely high interest rates! Especially when you have guys like Mr

Harvey Norman throwing interest free deals at you day in-day out, your desire for the

latest plasma TV or couch becomes too much to resist, and our self discipline goes

out the window.

We as Australians, have gone from living in a \’savings\’ based society to what is now

a \’credit\’ based society. What I mean by that is, back in \’the good old days\’ if our

parents didn\’t have the cash or savings to buy something (a car for example), they

wouldn\’t buy one. Whereas these days, if we don\’t have the cash or savings to buy

something we will simply go and put it on credit just so that we can fulfill our need

for short-term gratification.

There are 2 secrets to budgeting, and they are simple:

DON\’T USE CREDIT CARDS
KEEP YOUR SURPLUS OUT OF SIGHT (and therefore out of mind)
When you use credit cards, all you are doing is spending money that you don\’t have.

We as humans all think the same, and I know from my personal experience that if I

have $500 in my bank account, I will spend $500. I also know that if I have $2,000

in my bank account I will spend $2,000. It is just the way that our minds work……

In regard to the 2nd point – \’keeping your money out of sight and out of mind\’, this

really comes down to your banking structure. I recommend that all of my clients have

a seperate \’living account\’ in which all their food, fuel and bills money is

deposited into by their payroll office each pay day. They then have another account

setup for them, which is not directly accessible. They have their payroll deposit

the remainder of their income into this 2nd account where all the surplus money will

accumulate. Note: I personally advise all of my clients to use their home loan as

this 2nd account because they can\’t directly touch it or see the surplus, and it also

goes to work for them by off-setting the interest payable on their mortgage each day.

By following these 2 simple steps it will just about be impossible for you to spend

more than you earn, and you\’ll accumulate a very healthy surplus in your mortgage

account, where it can just sit and work for you until you REALLY do need it.

Begin Considering these Debt Consolidation Techniques today.

I have been speaking with a few clients over the past week about the benefits of Debt

Consolidation. It is a technique that is really well known throughout the US, but not

so many people are familiar with it here in Australia. I thought I\’d share some of

my views on it with you.

By simply rolling a number of your smaller individual debts such as credit cards,

personal loans and car loans into the one loan it actually allows you reduce your

monthly debt repayments quite substancially. By getting your credit cards (16%), AGC

Cards (24%), Car Loans (11%) and Personal Loans (11%) all onto a lower interest rate

of approximately 7% the money you save is mind blowing.

As an example, rather than paying 16% on a credit card which is maxed out at $5,000,

you can consolidate it onto your home loan. The saving is around $37 per month in

interest repayments. That may not sound like a lot in savings, but keep in mind

interest is charged daily, so that is a saving that compounds each and every day of

each and every month.

This debt consolidation technique allows you to knock more money off of the principal

each month, as you are now paying at least HALF the amount of interest on the debt.

By utilizing debt consolidation you will end up having all of your debt under the one

loan with just the one, low simple monthly repayment.

Many Australians are so highly geared at the moment, that they are only living a week

or two ahead of the debt collector. As interest rates continue to rise over the next

year, the average Australian will be feeling the pinch.

In summary, debt consolidation is evolving as a clean and simple way of restructuring

your finances onto a more effective and efficient financial set-up.

The consolidating of your credit cards, personal loans and car loans onto your

mortgage will be the best decision youll ever make.

You will save thousands of dollars in interest repayments and free up some much

needed cash flow.

Our debt consolidation specialists are able to let you know exactly how much time and

money they can SAVE you by consolidating all of your existing debts and putting them

under the one roof.

With just one monthly debt repayment to worry about, your life will be far less

stressful and your money problems will disappear.

An example of a standard debt consolidation client:

Home Loan $200,000 $1,400 per month repayment
Credit Card $15,000 $450 per month repayment
Car Loan $20,000 $445 per month repayment

TOTAL $235,000 $2,295 per month repayment

After the Debt Consolidation $1,565 per month repayment

A massive SAVING of $730 per month in repayments

To find out how much money we can save you, contact one of our debt consolidation

specialists NOW!