How to make 2016 the year you get ahead
If you're looking to make 2016 the year you take ownership over your finances, you should start by comparing your options.
Whether you’re looking to save money on your credit card or are interested in a discount on your mortgage, the key to mastering your personal finances is knowing what products are available. Comparison saves money, so take the time to examine your own personal financial situation to see if you’re putting your money to the most effective use.
Credit card balance transfers could save you money in interest repayments.
Despite predictions that Australians were to be frugal spenders this Christmas, many of us are less disciplined when it comes to credit card use in the holiday season. If you have a credit card balance that you would like to pay off quickly, a balance transfer if used correctly is an option to consider.
There are a range of offers in the market, and there are a range of factors that will determine the card that’s right for you; however, in a lot of cases the lowest interest rate and longest promotional period are the cards that will save you the most money.
To show exactly how much a balance transfer credit card could save in interest payments, you will save approx. $400 in interest when a $3000 balance is transferred to a credit card with a 0% for 12 months balance transfer promotional offer1. It pays to compare your options and find the card that’s right for you.
Is 2016 the year you break up with your mortgage lender?
Are you aware of just how diverse the Australian home loan market really is? Your options are not just limited to the big four banks. Online lenders, unions and societies all offer competitive products aimed at shaking up the Big Four Banks dominant hold on the $1.26 trillion mortgage market – so why not compare your home loan in 2016 and find out if you can get a better deal?
By switching to a competitors home loan, you can save thousands in interest repayments over the life of your loan. Research by a mortgage broker has shown that on a $300,000 principal and interest loan charged at 8.3% p.a., borrowers can save $50 a month for every 0.25% p.a. discount they can negotiate on their mortgage interest rate.
If you need information on how to refinance your mortgage in 2016, our refinancing guide has you covered.
Protect your loved ones from financial hardship if you pass away
Life Insurance provides a safety net for your family should you pass away. It pays a lump sum benefit the can cover the immediate expenses that come with death of a family member - both now and into the future. Although organising a funeral is not cheap, it’s the cheapest thing about a breadwinner dying. Mortgage expenses and loss of income, to name a few, will all contribute to the devastating effects of a death of a loved one.
Death is a serious matter and can complicate your family's financial situation if you are unprepared. Life insurance can help your family make the appropriate funeral arrangement that you deserve, without having to worry whether they can afford it or not. Compare your options to make an informed decision about the life insurance policy that is best going to protect your love ones.
The savings market is competitive with banks often reserving their best offers for new customers
If you have the money, a high interest savings account is a great way to make your money work for you in 2016. The Australian banking landscape has changed since the global financial crisis and lenders are trying harder than ever to win business by offering competitive savings account products. A return of 5% p.a. five percent, as offered through some online savings accounts, is a great tool for investors and mum and dad savers alike.
By initially depositing $1,000 in a savings account with an interest rate of 4.00% p.a., and then depositing a further $100 a week for a further five years, you will have saved $29,615 in total and earned $2,960 in interest. It’s worth noting that online savings accounts have their interest calculations compounded monthly, whereas term deposits are compounded yearly. It’s important to know how you plan to save before you go and open a savings account, as there may be other products, like a term deposit, that are better suited to your needs.
There are a range of savings accounts in the market offering different rates with different bonus structures. Make sure you compare your options to find the right savings account for you.
Looking for more information? Read more personal finance tips for 2016 - 7 new years resolutions you can actually keep!
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