Footnote Frivolity***, Money Matters

Consolidating debt with the home loan

Three years ago, I wrote a post on switching to a low-interest credit card and or consolidating the credit card debt in the home loan. I said I’d avoid redraw at all costs but never explained the reasons why. Continue reading

Money Matters

Paying off a different kind of debt

Last Tuesday, the RBA’s 25bp rate cut brought the official cash rate down to 2.75%, the lowest it has been in fifty-three years (via The Australian). I usually make a voluntary repayment into the fixed portion of my loan whenever RBA makes such a mortgagee-friendly announcement. But with 1st of June fast approaching, I thought I’d attend to another kind of debt, the student loan.

Prior to the economic blip of 2008 and the mortgage in 2009, a less mustbethrifty me decided to do a degree for the fun of it. A couple of years later, I ended up sixteen grand poorer; for the last oh so many years, I’ve been paying for it through my tax return*. Continue reading

Footnote Frivolity***, Money Matters

And it’s a wrap

Thanks to another RBA rate cut, Christmas has come early for mortgagers. All four major banks, CBA, ANZ, NAB, and Westpac, have passed on the full cut (via The Age), saving mortgagers with a $300, 000 loan a little over $50 in interest per month*.

$50 doesn’t seem like much. Two choc tops and two 3D movie tickets, perhaps? When directed towards the mortgage, however, that small sum can potentially turn into thousands of dollars saved. So while everyone else spends their windfall at <insert shopping centre monstrosity here>, I’ll be maintaining my repayments at their higher-than-required level as per Carolyn Boyd. I mean, why break a good habit?

Anyway, like schools, op shops, and the Reserve Bank, mustbethrifty.com will be shutting down for the December/January break. Weekly postings shall resume mid-January. Until then, have a safe, fun, and thrifty holiday.

Lots of love,

M.


*Do the maths yourself to find out how much you can potentially save with a 0.25% rate cut: 0.25% p.a./12 months x loan amount = amount saved per month