- The total interest to be paid over 25 years will go up to $564,706, which is an extra $40,064!
- An extra $1,616 will be needed each year to meet minimum repayment requirements.
- 00 percent interest rate rise
- Minimum weekly payments will go up to $773
- The total interest paid over 25 years will go up to $605,445—another $80,803!
- An extra $3,246 will be needed each year to meet minimum repayment requirements.
On April 8, the Sunday Herald Sun said, "Families who are fighting to keep their homes are using credit cards to pay their mortgages as a last resort." reporting that one family has racked up about $160,000 in credit card debt on eight cards and that "charities and financial counsellors say there are thousands more, with many on the verge of losing their homes if interest rates go up just one point."
All this talk about rising interest rates and how they affect homeowners shows how important it is to stay in charge of your money. Families will have to cut back on other spending if they add more money to their mortgage payments. This is to avoid falling into the trap of paying for their lives with credit cards, which have interest rates of about 20% p.a.
The best way to keep your finances under control is to make a budget every month. Making a budget is the best way to figure out how much you spend and where you spend it. This is the first step to saving money.
By making a budget every month, you know where and how you plan to spend your money over the next few months. So, you'll be able to figure out where you can cut back on your spending and save money that can go toward making those extra mortgage payments.
People who have trouble making a budget or don't know where to start can get help at www.easy-budgeting.com.
www.easy-budgeting.com has made it easy and possible for everyone to make a budget. The site has a simple, easy-to-use budget model for 12 months that was made in Microsoft Excel. You don't have to be a computer genius or an Excel pro to manage your money. All you need is the desire to do so.
The main feature of www.easy-budgeting.com's 12 month budget model is that the user can budget an income or expense item by taking just 3 simple steps. The user only has to choose the start month, how often and how much money comes in or goes out, and how much money comes in or goes out. The data for the next 12 months is then automatically generated based on the parameters chosen.
After filling out the budget and looking at the 12 month summary and expenses graph, users can easily see where their money is going and where they could cut back. The budgeting process will help you figure out where your problems are, get a handle on your spending, and be better prepared for when interest rates go up, which they will. If you do it regularly, budgeting will become second nature, and you'll find that your money will go further and work harder for you and your family.
To learn more about the 12 month budget model, go to www.easy-budgeting.com.
