'Debt Management'

Many people are beginning the year with a lot of financial baggage. The most dangerous sign of excess financial baggage usually involves credit cards which have reached their limits.

If this is the case, there are a few things you can do to ensure the rest of this year does not end the way it started:

• Cut up your credit cards to stop your spending.
• Pay the maximum you can afford not just the minimum payment
• Don’t get sucked into sales thinking that you are saving money - curb your spending habits Now!
• Switch to a credit card which offers an interest free period
• Consider redirecting some of your savings into paying off all your credit card debt and leave only a little bit in reserve for emergencies. (if any)
• Create a budget to monitor how much you spend and on what items
• If the debt is totally unmanageable and you have no chance of getting it on track, call the lender with the credit card to arrange a payment plan -  don’t ignore it and hope it goes away.
• Share this article with your loved ones, and finally
• Contact Chocolate Money and see whether there are cheaper rates for all your loans or to consolidate your debts into your mortgage. This can halve your monthly repayments!

Please note that when you consolidate your debt into your mortgage, you are spreading your debts over a longer period of time and therefore may end up paying more interest over the term of the loan. But, it may be a great way to help get out of a rutt and manage your day to day cash flows.

• You are able to separate these loans from your mortgage so are able to pay them off quicker than your mortgage once you are out of survival mode.

Please feel free to contact my team and I to do a free loan health check and for independent loan advice from experts in the finance industry.   enquiry@chocolatemoney.com.au

Harry Pontikis

1300 137 539

Planning your move

• Make sure you plan as far ahead as possible.
• Remember that the removalists will be handling your valued and often irreplaceable possessions, so it is important to use a reputable firm.
• Consider insurance to cover your contents while they are being moved. Discuss this with the removal company.
• Obtain a quote for moving and ask for a flat rate rather than an hourly rate. If there are any delays and you have an hourly rate it can become more expensive than you anticipated.

Packing and Removal

• If you are packing yourself, start well in advance of the moving day and avoid the last minute panic.
• Defrost your fridge the day before moving.
• Go through the house with the removalists when they arrive, giving any special instructions you may have. Do the same when you arrive at your new place.
• When packing cartons, it is a good idea to mark the contents on the top and on the side for easy identification.
• It is not necessary to empty dresser drawers, but remove all fragile and heavy items and all liquids. Do not overload the drawers.
• You can use clean tea towels or tissue to pack breakable objects.
• Carry money, jewellery and valuable papers with you. Removalists will not accept responsibility for articles of extraordinary value.

Change of Address

• Notify utility companies (gas, electricity, water and telephone) when to discontinue services.
• Make arrangements in advance for all services to be connected at your new home.
• Notify people of your change of address, including bank, motor vehicle registration, post office and organisations of which you are a member.

Getting Help

http://www.movinghome.com.au

The increase in interest rates and fears about rises has dominated the news, illustrated by frightening tales of debt-laden homeowners.  A brief snapshot of actions you should consider incase the economic changes turn out to be a ‘storm’:

1. Consider fixing all or part of your existing debt and therefore locking in an interest rate.
2. Ask us if your current loan allows you to switch to ‘Interest Only’ repayments for a period of time. (this will reduce your monthly repayments significantly)
3. Consolidate your existing debts into your home loan. (Will significantly reduce your monthly outgoings - good for cash flow so great when times are tough.
4. Consider giving yourself a ‘safety net’ by seeing if there is any equity in your current properties and attaching a Line of Credit on to it.

If you have a business which is not running to your satisfaction, you can engage Chocolate Consulting to guide you. It’s a fixed priced service with a tangible strategy, outcomes and benefits.

Contact us today by clicking here.