Need Cash for Some Holiday Spending? Here’s Why Refinancing Might Be the Answer

According to ASIC (Australian Securities and Investments Commission), Aussies plan to spend $955 on average over the holiday season. The majority resort to their savings when it comes to paying for Christmas presents while others opt for credit cards, Christmas bonus, and loans.

We have discussed here before the reasons why you should refinance. Consumers are often advised to consider refinancing in order to obtain a better interest rate and payment term. Instead of throwing out the original mortgage and creating a new one, the current loan is initially paid off to give way to the second loan. However, in this context, you can opt to cash out the equity of your home loan. To know if you have enough equity, it’s advisable to consult with your local finance broker.

What is cash out?

To give you an idea, this is a term used by Australian lenders to describe when a borrower releases the equity from their home, commonly known as home equity loan. The loan amount is determined by the value of the property, and the value of the property is determined by an appraiser from the lending institution.

Okay, this might sound overwhelming for some but as your Finance broker, I could help you with the whole process. Here at Soul Finance Group, we could advise how much you can borrow and let you know the risks and the benefits as well.

Call me today on 0408 081 082 for a no-strings mortgage evaluation and see how much you could save by refinancing your home now– and get your loved ones’ Christmas present list checked off early this year to avoid hassle and stress.

Reference: https://www.moneysmart.gov.au/managing-your-money/budgeting/spending/australias-christmas-spending

Disclaimer:

Credit Representative (486927) is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post Need Cash for Some Holiday Spending? Here’s Why Refinancing Might Be the Answer appeared first on Soul Finance Group.

According to RateCity’s Australian Bureau of Statistics data analysis, Australians have borrowed $46.6 billion in personal loans over the past year but experts claim many are clueless of how applications are assessed and how this might affect their credit scores.

Lenders assess the loan applicant before giving an approval and offering an interest rate. They utilise a model called “risk-based pricing” where their lowest rates are only available to customers with excellent credit scores. It’s a common mistake of the customer to apply immediately once they see a low rate and so they get surprised when they’re offered a higher rate or worse, get rejected.

It is important to note that every application can put a mark on your credit file and has the potential to reduce your score even further. Your credit score affects your interest rate so it is highly suggested for you to know what it is. You can go to the Equifax (formerly Veda) website to check your credit report and score.

Consequently, knowing what your score is can be beneficial in accessing for a better interest rate.

If you want to avoid risks any further, seek the help of a professional. As a finance broker, I can help you with the process of securing a personal loan at a no cost to you. Using your credit score and necessary documents, I can help you look for a personal loan deal that is apt for your financial situation and need.

Call 0408 081 082 today or message me on Facebook.

Disclaimer: 

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post What You Need to Know About Personal Loan appeared first on Soul Finance Group.

“Where did my money go?”

Budgeting is making sure that you’re spending less than you’re earning and planning for both the short and long term. Unfortunately, many people think of budgeting as depriving themselves and they avoid it like they do a diet. However, just as a diet is really a program for eating, budgeting is just a program for spending. (From Investopedia) You create a plan how to spend your money to determine in advance whether you have enough to purchase the things you want. However, there are moments where you deviate from the budget and find yourself thinking, “where did all my money go?”

The culprits are probably the tiny “leaks” or “sinks” you tend to not noticed. These are simply costs that aren’t accounted for in the budgeting process. Usually, they’re completely reasonable expenses – they just happen to eat up a lot more money than was expected for a number of reasons. (From The Simple Dollar) This little “leaks” sneakily come through until they add up and before you know it, your money is gone.

Let me enumerate some of these “money sinks”/”leaks” to help you determine and revisit your budget. This way, you can adjust your original financial plan and not wonder where your money was actually spent.

• Non-essential bills – monthly subscription, telephone bills, gym membership, etc.
• Irregular bills – your daily coffee, car maintenance, house maintenance, haircuts, personal time off, etc.
• Recurring little expenses – a snack, drink, any purchase from a quick trip to a store, etc.

The list can go on but you get the picture. A $1 chocolate bar might not really have a bearing but if you make a daily trip to the store purchasing this, that’s roughly $30 out of your budget every month. The key is to review your statements, bills, and receipts and identify where the majority of your budget is going. You might need to cut back on that coffee or consider preparing your own lunch at home. Prioritise your spendings. Reviewing your finances from time to time is actually a good practice as it can literally pay off.

A little saving goes a long way.

References:

https://www.investopedia.com/university/budgeting

https://www.thesimpledollar.com/finding-and-addressing-the-money-sinks-in-your-life/

Disclaimer:

Credit Representative (486927) is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post “Where Did My Money Go?” Identifying The Leaks in Your Budget appeared first on Soul Finance Group.

Consumers who use AfterPay and ZipPay will now have to disclose what they owe on these transactions

AfterPay and ZipPay are digital credit platforms which enable consumers to purchase goods and services and receive them immediately without paying for them upfront. The digital credit companies serve as the financiers and pay on the consumer’s/purchaser’s behalf. The purchaser will then make repayments to the financier usually in installments over a short period of time. For instance, AfterPay requires four equal fortnightly repayments. Fees and charges apply for those that fail to meet the repayment terms.

There are a number of situations in which the “buy now, pay later” is useful, including for those on a lower income who are looking for a treat but cannot afford to pay for everything in one lump sum. It has been a proven effective strategy for businesses to include this on their sales efforts to entice shoppers to purchase more. It can be hard to get the money together that you might need upfront. By buying now and paying later, you are able to get the product immediately, but with easy monthly repayments, rather than needing to find large amounts of money in advance.

The digital services can be considered convenient but critics claim they make it easier for consumers to build up debt. There are instances where consumers tend to lose track of their repayments!

Major banks such as Westpac and its divisions – Bank of Melbourne, St George Bank and BankSA – are “tightening their scrutiny of digital consumer credit by property buyers in the latest move to get a clear picture of a borrowers’ true financial position in a bid to improve borrowing standards and serviceability.”

Under Westpac’s new policy, a property loan applicant who used AfterPay and/or ZipPay has created a liability that must be included in any loan application along with the monthly repayment. Simply put, if you are applying for a property loan, you have to declare whether you have an ongoing credit with AfterPay and/or ZipPay, otherwise, your chance of getting approved is very slim.

 If you intend to secure a property this New Year, double check with your trusted mortgage broker the lending requirements of your chosen bank or lender. Furthermore, as a borrower, it is also your responsibility to declare all your outstanding debts that would affect your credit rating. However, when in doubt, you can always consult your mortgage broker who will be able to help you throughout the loan application process.

Disclaimer:

Credit Representative (486927) is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post Are You Using AfterPay and ZipPay? Banks Apply Stricter Measures on Lending Requirements appeared first on Soul Finance Group.

As we wrap another year, we look back at the most viewed and most read blog entries posted on our website. The list was based on audience engagement via social media shares and number of views and engagement accumulated from our ever-trusted Google Analytics. They’re arranged from the oldest to the most recent published. Some will make you think; others will bring back those dreams you have put off for so long. They may also serve as a reminder of the importance of being informed and having knowledge as empowerment.

It was quite a year.

10 – Top compact SUV’s under $30k

Compact SUV’s are said to dominate the vehicle segment as every major automaker now offers one, giving shoppers many choices. To keep you from doing the daunting task of checking websites and reviews online, we had listed the top 7 compact SUVs that will cost you just less than $30,000!

9 – Mother’s Day Gifts That Will Fit Every Budget

Instead of providing some random options, we had given you gift ideas at every price point. So, no matter how much your budget is, it can surely match what you can give mum to make her feel extra special on that day. We scavenged the internet for the most underrated presents perfect for our mums, and looked for the best gift that will effectively work for a specific price range—from zero budget to having it all the way!

8 – Nature Meets Style: Top Glamping Spots in Western Australia

Glamping (Glamour + Camping) marries the best of both worlds: the rustic beauty of nature, and the classic comforts of luxury. This entry is probably one of my favourites because it showed a new side of travelling—getting away with style! Plus it doesn’t have to be expensive as there are spots that cater to whatever budget you might have.

7 – Buying a Used Car: Things You Need to Know

The process of buying a used car can be overwhelming, much like buying any other property. So, to help you navigate the seemingly-complicated used car market, we had provided you tips before landing on that deal.

6 – 10 Personal Finance Hacks

As an experienced banker and a Finance Broker myself, I pretty much saw all the possible worst scenarios experienced by my clients in terms of managing their finance. In as much as I can, I share what I know to help them save and work on their personal finance by starting within themselves and/or within their homes. Hence, the birth of this blog entry…

5 – From Saving to Settlement: How to Buy Your First Home

Buying your first home proves to be a major financial decision so you need all the help that you can get. And not surprisingly, most frequently asked questions revolve around this process!

4 – How to Switch Lenders and Potentially Save on Your Budget

Are you one of those home loan owners who are playing safe by sticking to their lenders to avoid uncertainty and hassle? Well, in this post, we’ve listed down a guide on how to switch lenders which can potentially save you money on interest! (And apparently, people were INTERESTed!– see what I did there?)

3 – Easy-to-Understand Infographic on the Mortgage Process

Yes, this is also one of those most frequently asked questions—the mortgage process. We’ve created an infographic to answer all those queries. (If you have further questions, ask us today!) Click here for the infographic.

2- Tips to Haggle for a Better Deal

Haggling may seem like a huge effort for some and so it certainly is not for everyone. People tend to not haggle on big purchases, or on things like home loan, insurance, or credit cards. They may think it’s embarrassing, not worth their time, or maybe they don’t have an idea how to do it. So, we’ve written down some tips to sharpen those haggling skills you thought you never had!

1 – Christmas Gift Ideas for Every Member of The Family

And finally, for this season of gift-giving, it tends to be trickier when it comes to picking presents for each member in the family. It’s always a smart move to have a list of ideas of gifts to give because it tends to get stressful once you’re inside the store and you’re clueless what to purchase! Luckily, Soul Finance got you covered with some gift ideas!

There you have it– our most-read articles for this year. Thank you for reading our blog posts and we hope you continue to support our entries in 2018! Wishing you and your family a blessed and Merry Christmas!

Disclaimer:

Credit Representative (486927) is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post The Ten Most-Read Soul Finance Group Blog Posts of 2017 appeared first on Soul Finance Group.

Apps that will help you manage finance

Earning money is one thing, managing it is a whole another challenge. Managing your finances can be tricky. The good news is you can educate yourself on how to responsibly handle your funds and there are industry professionals who you can seek for consultation. However, if you don’t have much time to spare, you can actually start managing your finances in the comfort of your own home, using the apps we consolidated below:

TrackmySPEND

MoneySmart’s spending tracker app TrackMySpend lets you keep track of your personal expenses on the go. It’s a free app that shows you what you are spending your money on and puts you in control. The app helps you track your day-to-day spending to find out where you can save and it lets you view your spending history on screen or export to a CSV file. It’s also available on Google Play.

 Pocketbook

With its slogan “Life’s good when you’re on top of your money,” this app does help you take control of your finances. It tracks exactly where your money is going by organising your spending into categories like clothes, groceries and fuel – showing you where money is being spent. It also lets you set up budgets for each category, see your balances and view your transactions which gives you actionable insights so you can spend and save even smarter. Pocketbook app is for free which is available on Apple Store and Google play.

 Easyshare

Tired of chasing your housemates to pay their rent and bills? Well, this app does that for you. It is an “all-in-one solution to pay your rent, bills and split sharehouse expenses.” Easyshare collects everyone’s share and pay the total for you. Each user chooses their preferred payment method with the multiple options of paying via bank transfer (free) or credit card (surcharge applies). This is a free app that notifies your housemate if the payment is already due. Download it on Google play and Apple store.

Splitwise

Does one of your friends always owe you from your trip ages ago? Splitwise is one way to share bills and IOUs and make sure that everyone gets paid back. It keeps track of apartment bills, group trips, and random IOUs. You can download the app for free which lets you split household bills with roommates, to figure out costs for a group vacation, or just to remember when a friend spots you for lunch. It is available on Google store and Apple store!

Finch

Wondering where your money went last weekend? Finch is a “financial app for your social life where you can run tabs, pay friends and track your social spending, in one convenient place.” Their branding claim is “combining data intelligence, behavioural psychology and gamification to present your financial world in a way you’ve never seen before.” Check out this app on Apple store and Google play.

 While these apps may or may not eventually ease your struggle in managing your finance, it is always a smart move to consult a professional and see what are your options. Nevertheless, self-discipline is the ultimate ingredient in successfully taking control of your hard-earned money. J

Disclaimer:

Credit Representative (486927) is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post Apps That Will Help You Manage Finance appeared first on Soul Finance Group.

5-minute guide to efficiently managing your finance this Christmas

The Christmas season proves to be an expensive time for many of us. It seems to encourage us to embark on the usual Christmas practice of “shopping ‘til we drop.” The festive feeling makes us extra generous and gets us to spend way more than we usually do. However, we have to brace ourselves for the subsequent financial shock when the bills make their way in our mail.

So to help you soften the blow on your next bill by efficiently managing your finance, have a look at this quick 5-minute guide:

Set a budget.

Draw up a budget for your Holiday spending. This way, you will be able to create a limit of how much you are willing to spend. More than just setting a budget, it is important that you stick to it. Don’t deviate from your original set amount. The last thing you want is paying more than what you can actually afford.

Consider consolidating.

Okay, so you are feeling extra generous this Christmas. There’s nothing wrong with that. During this season, there are lenders and non-lenders who offer competitive deals which you can take advantage of. If you have a balance on your credit cards, you can opt to consolidate all your unsecured debts into one loan. This can potentially save you money on interest. Of course, there might be necessary fees and charges so make sure to ask your local broker about it. But this is something you can definitely consider.

 Make a list.

You have set your budget and you have your actual budget. Now it’s time to “marry” that into your list. Take note of all the things you need to purchase and the food you need to prepare. Write down the names of the people you’re going to give gifts to. Think of what to buy them and add that to your list of things to buy. To save time, it’s also smart to plan and strategise which stores you need to go to first.

 Research, research.

When it comes to looking for great things to buy, you can do so much with research and the good ol’ Mr. Google. Using the list that you made, search for some cheap but quality stores in your area where you can buy the items you wrote down. Make your money worth it by web searching for discount or coupon codes that you can use at the checkout. Sometimes, things are cheaper online than in store but be cautious when shopping online. You can use your research as a gauge when you actually go to the store and purchase these items.

Track your spending.

To avoid deviating from your budget, monitor your spending. There’s an app called TrackMySpend (http://apple.co/1s4DaYs) where it helps you set realistic spending limit and stick to it. It enables you track spending by categories and lets you separate ‘needs’ and ‘wants’ to help identify opportunities to save. The last thing you want is to go over budget so make sure to stay within your set budget by tracking your spending.

Happy shopping!

Disclaimer:

Credit Representative (486927) is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post 5-Minute Guide to Efficiently Managing Your Finance This Christmas appeared first on Soul Finance Group.

To give you a glimpse of the process, we’ve created an Infographic for your knowledge and information. We made it simple and easy to understand, because really, getting a loan should not be a difficult task. Your local finance broker can do all the legwork and should be available for your questions and concerns.

So here’s an easy-to-understand infographic on the mortgage process:

The mortgage process

Still have questions? Call Kirsten 0408 081 082 or send us a message today!

The post Easy-to-Understand Infographic on the Mortgage Process appeared first on Soul Finance Group.

It’s a different story, of course, when you are on a tight budget (well at least you know you are) and you need to buy something. Operative word is need—do you actually need it? Or are you justifying your purchase yet again? This is subjective of course because chances are, the biased side of yourself will say anything in its power to make that purchase a success. Before you know it, you are left with the other side of you—the side which regrets why you bought that 50% off lampshade in Ikea. It’s a good deal, right? Except you don’t know now where to place it along with your 8 other lampshades.

So to avoid any costly regrets, and to save for something that really matters, here’s an infographic to guide you in answering the dreaded question—should I buy this?

“Should I Buy This?” Infographic

Credit Representative (486927) is authorised under Australian Credit Licence 389328.

The post Should You Buy It? This Simple Chart Will Help You Decide appeared first on Soul Finance Group.

If the holiday season has left you close to broke and the bills are starting to stack up, it’s time to look for ways to get your finances in shape. For most, January has become the month when many of us try to detox. We give up beer for a while, cut off our portion of that steak, and make promises to be nicer to our neighbour in the new year.

This is also the time of the year where it makes sense to regain essential control of our finances. It is important to get rid of old habits, any residual money pits, or anything else that is hurting you financially so that you can move on in a financially sound manner.

While the word “detox” can be associated with the body, such as taking away body toxins or cleansing, this term can be used in helping us take control of our finances. A great way to start 2017, right?

This article shares how to detox your finances in 5 smart and easy ways:

1. Declutter.

Take a look at your things at home. Sort them by identifying which are the items you don’t need anymore, and the things you can sell. You’d be surprised how much of these things you don’t really need and just let go of that inner-hoarder in you. Be cautious not to “over-justify” just because you don’t want to let go of some stuff. Remember, this first step is vital as this is simple yet it can essentially improve your financial well-being.

2. Sort out your credit and debts, savings and insurance.

List down all your debts and credits. Check your credit report. Try not to get too overwhelmed as this step tends to get intimidating especially if you have a long list. The key here is to think of the end goal: you will be able to pay off this debts no matter what. Take note of your savings and insurance. If you don’t have any, now is a great time since we are cleaning up your finances. Invest in yourself!

3. Create a spending plan.

Keep track of your money. Develop a system wherein it enables you to allocate your income and money accordingly, in order to cover all your needs. It may take a few months before you will be able to master the system but don’t lose heart. Moreover, there are tons of available apps which can do exactly this for you so google away!

4. Save, then spend.

Most people, if not all, find it difficult to save money. If you are one of these, try this simple hack. Once you get your allowance, or your salary, or wherever you get your income, determine a percentage of your savings that you will get from this. The amount left is what you will spend. Easy.

5. Choose the best people to advise you.

In order to properly guide you in the management of your finance, it’s encouraged to seek professional advice. Try to ask around if your friends or relatives happen to know people who can help you. In this way, steps 1 to 4 will make sense and effectively help you in achieving your financial goals.

Disclaimer: Credit Representative (486927) is authorised under Australian Credit Licence 389328.

The post Detox Your Finances in 5 Smart and Easy Ways appeared first on Soul Finance Group.