Articles About Finance And Refinancing

Budgeting For Interest Rate Rises

On Wednesday April 4, the Reserve Bank of Australia (RBA) decided leave the official cash rate on hold at 6.25%, saving homeowners the much anticipated 0.25% increase in variable mortgage rates. Many analysts are tipping the RBA is waiting on official March inflation rates before deciding on any increase and believe an increase is likely in May.

www.news.com.au stated that ?Higher rates are forcing people into financial hardship with a survey by NEWS.com.au and Coredata released today revealing almost one in three Australians would be forced to sell their home if interest rates rose by 1 per cent.?

Furthermore, ?Of property investors, 44 per cent said a 1 per cent rate rise would force them to sell their properties as mortgage costs got too much to service.?

Take the following mortgage and see what happens when interest rates increase:

Current situation Loan amount$400,000 Interest rate7.99% Loan term25 years Weekly minimum repayment$711 Total interest payable over 25 years$524,642

0.25% interest rate rise - Weekly minimum repayments will increase to $727 - Total interest payable over 25 years will increase to $544,588 ? that?s another $19,946! - Additional amount required per annum to satisfy minimum repayment requirements will be $812

0.50% interest rate rise - Weekly minimum repayments will increase to $742 - Total interest payable over 25 years will increase to $564,706 ? that?s another $40,064! - Additional amount required per annum to satisfy minimum repayment requirements will be $1,616

1.00% interest rate rise - Weekly minimum repayments will increase to $773 - Total interest payable over 25 years will increase to $605,445 ? that?s another $80,803! - Additional amount required per annum to satisfy minimum repayment requirements will be $3,246

The Sunday Herald Sun reported on April 8 that ?Battling families are using their credit cards to pay their mortgages in last ditch efforts to save their homes.? reporting one family that has accumulated approximately $160,000 in credit card debt on eight credit cards and that ?charities and financial counsellors say there are thousands more - many just one interest rate rise from losing their homes.?

All this talk about interest rate rises and the impact it is having on homeowners enforces the important of staying in control of your finances. Applying additional amounts to the mortgage repayments means families will need to cut back on other areas of spending to avoid the trap of financing their lives via credit cards which attract interest rates of approximately 20% p.a..

The best way to stay in control of your finances is to ensure you regularly complete a budget. Budgeting is the key to understanding how much you are spending and where you are spending your money - this is the first step to being able to save money.

By regularly completing a budget you regularly understand where and how you plan to spend your money over the coming period. That way you can determine which areas of your spending can be better managed i.e. where you can save money which can be applied to those additional mortgage repayments.

For those people who struggle with budgeting or don?t know where to start when it comes to budgeting, www.easy-budgeting.com can help.

www.easy-budgeting.com has made the process of budgeting easy and possible for everyone. The web site offers a simple and easy to use 12 month budget model created in Microsoft Excel. You don?t need to be a computer wizard or an Excel expert, you just need to have the desire to control your finances.

The main feature of the 12 month budget model provided by www.easy-budgeting.com is the ability of the user to budget an income or expense item by completing just 3 easy steps. The user simply selects the start month, the frequency and the amount of the income and/or expense and the data for the 12 months is automatically generated based on the parameters selected.

After completing the budget and reviewing the 12 month summary and the expenses graph, users can easily determine where their money is being spent and where cut backs are possible. The budgeting process will help you identify your problem areas, take control of your spending and ensure you are better prepared to manage those inevitable interest rate rises. If completed regularly, budgeting will become second nature and you?ll find that your money will go further and work harder for you and your family.

Visit www.easy-budgeting.com for more information on the 12 month budget model.

Rhys Campbell is a qualified Chartered Accountant residing in Australia, with over 16 years experience in the finance / commerce industry worldwide. http://www.easy-budgeting.com

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

MORE ARTICLES:

Achieve A Bad Credit Auto Loan Without Signing Your Life Away
Achieving a bad credit auto loan isn?t hard to do with the proper requirements and documents for the lenders pending the approval. There are a variety of sources and ways to finance a car. There are several factors that influence a lenders decision to give a bad credit auto loan. Such factors include money down, debt to income ratios, work history, and of course the most important; one?s credit score. Lenders have special financing options for those with bad credit; they usually look for some type of collateral, such as money down, or a trade in (car that?s paid off, or has positive equity). The amount of money down that you put towards your auto loan is extremely important this may determine your approval for the loan. Ultimately, the more...

BBK Welcomes New Corporate Finance and Operations Management Hires
A growing corporate finance and operations management advisory firm by the name of BBK has just hired a new managing director and ten other hires. BBK specializes in providing a number of corporate-related services such as litigation support, financial services, credit risk management and corporate restructuring.

Pulse 360 Grows Finance Vertical with Addition of GigaWealth
Wealth creation and management site latest to select Pulse 360 for targeted sponsored links.

Mortgage Payment Protection a Very Valuable Form of Protection
If you have not got any form of a plan to fall back on if you lose your income then life can become extremely hard At a time when you need to have your concentration on your health and making a recovery you would be worrying about where you would find the money to continue meeting the requirements of your mortgage

Dallas Real Estate Company Offers Mortgage Relief
"Boulevard Real Estate" of Dallas, Texas facilitates home buyers flexible financing. With Dallas mortgage companies closing their doors on flexible financing for residential real estate, Boulevard Real Estate, a Dallas Real Estate Company, has finally found a way out.

Solve Your Emergency Cash Need With An Instant Payday Loan
Sometimes when emergency cash needs happen, you're just not prepared for them. They could be anything that is completely outside your budget ? house repairs, medical expenses or just a few more cash you need for a downpayment on that new car. Whatever your cash emergency is and whoever you are, the concern is always the same: Where will I get the cash to cover it? If you need immediate help that offers quick and easy cash solutions to your problem, maybe it's time you looked into instant payday loans.

New 'Mortgage Liberator Guidebook' Gives Homeowners Plan for Protecting Against Foreclosure and the Rising Cost of Debt
Save your home and survive changing economic conditions by taking a page from the corporate play book: learn to protect against financial disaster. By mastering one interest-rate market, such as U.S. Treasury bond options, homeowners may develop a new income stream to offset inflation and the declining value of the U.S. Dollar.

Is it Safe to Use Online Car Finance?
Online car finance is convenient. You can apply over the net and shop around for a good deal from the comfort of your home.

Beat the Credit Crunch With Obelisk Private Finance
Obelisk Private Finance provides complete investment, mortgage and savings solutions to ensure clients beat the squeeze, minimising costs and maximising returns.

3 easy steps to getting a mortgage
3 Easy Steps to Getting a Mortgage Posted by Gavin King, Designated Broker for Realty In Idaho

The Offset Mortgage Centre Announces a New Guide for Flexible Tracker Mortgages
The Offset Mortgage Centre has launched a guide about Flexible Tracker Mortgages to educate the homebuyer on the pros and cons of the mortgage deal. The guide to Flexible Tracker Mortgages is presented in an article format and is an addition to the series of mortgage articles.

3 Ways To Finance Your Business Without Credit Cards
If you're in a cash crunch and need to find some financing for your company here are three ways you may have overlooked 1

Mortgage Originator Marketing – Differentiate or Die
One of the best ways to attract more clients is to quit marketing the same way your competitors do. Because when all mortgage originator marketing is essentially the same, it becomes nearly impossible to distinguish one loan officer from another.

Refinancing and Car Finance - Is it worth it?
Refinancing and Car Finance - Is it Worth It?No doubt you have heard of refinancing your mortgage. It has become all the rage, but now you can also refinance your car loan.