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

Money Matters, Reviews

There’s no trick to it: Save Money on Your Mortgage

If you’re serious about saving, you should look to your mortgage. After all, according to New Zealand finance writer Martin Hawes, the ‘mortgage has more scope for saving and adding to your net worth than any other area of your finances’ because most mortages cost hundreds of thousands of dollars, leading to ‘possibilities for making big savings’.

In his book Save Money on Your Mortgage, Hawes shows how loan size, loan period, interest rates, repayment size and frequency of repayments affect the overall cost of a mortgage. Continue reading

Money Matters

Refinance friction

Dear Mum,

The other day, you yelled at me when I brought up the ‘M’ word in our conversation. You told me that the global economy was flailing, that borrowing rates in America would drop to 0% interest, that I was stupid for wanting to fix rates for a portion of my loan in such a volatile market. You accused me of being a smartarse and not listening to you, before telling me to ‘do whatever I wanted’ in a tone that suggested that if I did choose to ignore your advice, I would not be welcome at your house; any progress we had made towards reconciliation since the day I left home unmarried would be made redundant. Continue reading