It’s really odd that right now more people than ever are in debt stress yet interest rates have never been so low. That just does not make sense, but it’s an unfortunate reality.
Here is my thought for today regarding this … if interest rates doubled by the end of the year and your repayments increased as a result, you would have missed the opportunity of a decade to reduce that debt while it was easy. Higher interest rates make it much harder to pay off debt because more of what you are paying goes in interest. Right NOW while interest rates are so low is the absolute best time to decide to put your head down and focus on reducing debt. If you leave it until interest rates increase, you will have missed the opportunity and it will be much harder than it is right now.
If you’re thinking there is no way you can find any extra to throw at paying down debt you may just be in luck … with the Australian Federal Budget announcing that lower personal tax rates are just around the corner, why not decide to put the increase in your take home pay after the tax cuts kick in, towards paying down debt. You’ve learnt to live on your current take home pay, so why not throw the increase at reducing debt and change your future?
Leading Expert on Family Money Solutions
and Founding Director
Spending Planners Institute