1. Create a budget
Creating a budget is the very first thing you should do to at the start of your loan. Establishing a routine repayment schedule can be very effective in managing your financial health.
You should update your budget each month to identify trends where you’re overspent and what you can do to save money.
2. Pay off your credit card
Getting rid of your credit card can be one of the best things to do in terms of paying off your mortgage. If you can;t get rid of it all together then certainly get rid of the one with the higher interest rate. Australians are some of the highest users of credit cards in the world, so getting rid of bad debt can be the first step towards paying off your mortgage.
3. Make extra repayments on your mortgage
If you are able to add additional funds into your mortgage, this will be very beneficial to you and your bottom line down the track. Injecting an extra $50 a month into your mortgage could ultimately save you thousands of dollars on your mortgage and help you to pay off your mortgage sooner.
4. Don’t borrow more money
A common mistake many people make when falling behind on their mortgage repayment is to borrow more money. Getting another credit card, asking friends or family for money or applying for short-term loans are all bad ideas.
5. Communicate with your lender
When you fall behind on your repayments make sure you contact your lender. Having an open communication link is very important since a mortgage is a long-term relationship. If you do happen to miss a repayment explain the situation so that you can discuss options that won’t hinder future repayments and can keep you on schedule.