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Refinance Articles
Mortgage Calculators
Why
Refinance Your Mortgage?
Will a Refinance Save You Money?
Who Needs a Mortgage
Refinance?
Drawbacks to Mortgage
Refinance Plans
Considering Mortgage Refinance? Bad Debt and How To Get Help
If you are considering refinancing your home loan because you
are struggling to make repayments, call and speak to your bank as the first
priority. If
you are in financial trouble, you really should speak to your lender first. In
Australia, the major lenders and bank CEO's declared recently that they could
give a respite of up to a year to the debtors that have lost their jobs in the
global financial crisis. Other alternatives could be to pay only the interest on
the loan or lengthen the term of the mortgage.
Credit Cards
High interest rates on credit cards should be negotiated
by asking for a lower rate or even getting it bundled into a personal loan. Get
rid of that credit card and replace it with a debit card if you really need to
pay your bills by card.
How to get Some Relief From Bills
Contact your creditor and ask for more flexible repayments. Sometimes you may be
able to get help from the government. Go to www.choiceswitch.com.au in order to
locate your local consumer relations contacts.
Taxation
If you are swamped by tax debt, contact the Australian Taxation Office and
ask for an extension on your payment schedule or even an annulment if you are
experiencing serious financial hardship.
Go to www.ato.gov.au or phone 13 11 42.
How to Apply for a StepUP Loan
The
National Australia Bank & The Good Shepherd Youth and Family Service have
put together a new product called the StepUP Loan,
which you are eligible for if you receive Family Tax Benefit
Part A or have a Health Care Card. This will get you a home loan (around $800 & $3000)
which may be used to buy
furniture, use cars or computers. 3.99% interest is charged for the loan term
and also the payments are very flexible. Another benefit is that there are no
charges or fess. For more information visit www.goodshepvic.org.au/microfinance.
Superannuation Access
When there is severe financial hardship, under some stringent situations, as in
if you are about to lose your home,
you are able to cash in part or all of your superannuation. Visit
www.apra.gov.au for details.
Refinance your loans
See our
article on Mortgage Refinancing
.
Is it worthwhile refinancing your mortgage? With the
current financial climate and indications that interest rates may be on the
slide, a lot of people from all economic groups are thinking that getting a
newer better loan would be the best option. Unfortunately, its not an easy
choice. You need to ask yourself if you will save enough money on your
re-payments to make up the costs of the re-finance.
You need to get independent financial advice to find out
if you will get any benefits from doing this, or else it may very well place you
in more debt.
Last Resort - Bankruptcy
You can get relief from all of your debts by going bankrupt, but this is
really the very last resort. This will usually mean that you are bankrupt of a
period of 3 years. You will be very much restricted by what you can own,
anything of real financial worth such as an inheritance will go straight to your
creditors. You will have to pay 50% of your income above $41,250 and more than
this if you have dependants. Another disadvantage is that you can't have
employment which requires the handling of and you will require permission from
your trustee if you want to travel. If your require more information, visit
www.itsa.gov.au.
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*Caution: The information contained on this website
only has
general financial advice. Consult your financial advisor for any specific financial advice.
This will assist in
determining your own situation and
specific financial requirements
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