Archive | Borrowing Money

Rising Mortgage Interest Rates

Prepare for Rising Mortgage Interest Rates

Prepare for Rising Mortgage Interest Rates Inflation is on the rise and this often signals an increase in interest rates. The rate of inflation for the three months ended March, 2017 was 1%, which lifted the annual rate to 2.2% – the highest it has been for about six years. However, much of this increase […]

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Fear of Debt

Conquer Your Fear of Debt

Conquer Your Fear of Debt When it comes to confronting your financial fears, the ultimate four letter word is debt. For many households, debt it is the single biggest contributor to stress. It has the power to destroy relationships and even lives. Everybody’s tolerance of debt is different.  Problems occur when two people in a […]

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Borrow with Caution

Borrow with Caution

Borrow with Caution When interest rates are low and property prices are rising rapidly, it is tempting to borrow more. There is a huge psychological effect on property owners when house values rise. They feel wealthier, and more confident. This can lead them to spend more or take on risky ventures and this often means […]

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Tips for Lending Money

Tips for Lending Money When money is tight, family and friends are often called upon for a loan. It’s nice to help people but lending money on an informal basis can be a recipe for disaster. Here are some of the problems that could arise: You may not be able to enforce repayment and if […]

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Using Interest-Only Mortgages

Using Interest-Only Mortgages An interest-only mortgage, as the name suggests, is one where no principal repayments are required to be made during the term of the loan. It is usual for an interest-only mortgage to be interest-only for a fixed period of time, such as two years or five years, after which it can either […]

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Microfinance for Low Income Families

Microfinance for Low Income Families Two of the toughest financial issues for people on low incomes are getting access to loans at an affordable interest rate and getting rid of high-interest, short term debt. That’s where microfinance comes in. Microfinance is the provision of financial services such as loans and savings accounts to people on […]

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Record Lows for Mortgage Interest Rates

Record Lows for Mortgage Interest Rates It has been many years since we’ve seen mortgage interest rates so low. That’s great news for first home buyers and investors in particular. Banks appear to be in a bidding war to attract borrowers. Meanwhile the Reserve Bank is in the process of implementing measures to restrain mortgage […]

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Managing Your Student Loan

Managing Your Student Loan  For first year tertiary students, one of the most daunting challenges is how to get financial assistance without being burdened with a lifetime of debt. A student loan is inevitable for most students. Student loans are available for compulsory course fees, course related costs and living costs, subject to eligibility criteria. […]

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Wriggle Room

Wriggle Room One of the traps of borrowing money in a low interest rate environment is not leaving enough spare money, or ‘wriggle room’ in your budget to cope with an increase in interest rates. This is particularly important to consider when you are buying your first home, upgrading to a more expensive home, or […]

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