While the rest of Australia was placing bets on the Melbourne Cup, the Reserve Bank of Australia has yet again kept official interest rates on hold. It was, in fact, more of a certainty than any horse, with experts predicting it will remain as such for at least the near future.
For many people, Melbourne Cup day marks the beginning of the ‘silly season’. In the run-up to Christmas, many people are finding their attention moving towards the more festive topics – yet now is the ideal time to begin to consider future financial plans.
Interest Rates are Low but Policy is Tightening
It’s well known that banks are tightening their procedures, and the process of applying for – and getting – a mortgage approval is more complicated. So, if you’re thinking that 2019 may see you investing, buying and selling, consolidating your debt or finally getting your first home, some financial wisdom in the run up to Christmas is sensible.
Save money (and improve your credit rating).
Rather than running up debt on credit cards that have high interest rates, in the next 7 weeks why not:
Buy presents early. When people leave it to the last minute, the issue of cost is often lost in the panic.
Make an agreement with family. Suggest to them a cost limit on gifts and/or come up with an arrangement that doesn’t mean buying a gift for everyone.
Compare online. You’ll be surprised at the price differences on the same item.
Use your loyalty cards. You may find you have enough frequent flyer or loyalty points to purchase gifts.
With a bit of early planning, you can enjoy the festive season, the current low interest rates AND get your financial house in order. That way, if you have your eye on property in the near future, you’re ready.