Fast Repay Home Loan - Debt Management Programs

MANY home buyers have the urge to pay off their home loan as fast as they possibly can. This is good, as a mortgage can be like a financial mill stone hanging around ones neck.

One of the most effective ways to pay off your home loan faster is to know how your interest is charged and know exactly how much your loan is costing you over the 25 or 30 years term. You need to know how to effectively use your cash flow and set up and implement an effective debt management program.

How is it that two people working for the same Factory / Company / School Institution / Government Department can end up in very different financial circumstances? The answer is simple: ‘Effective Cash Flow Management.’

The effective use of Cash flow can assist you in significantly reducing your Interest Costs. This is achieved because Interest is calculated daily and charged to your Home Loan Facility on the last day of each month. As the cost of Interest is calculated daily, the lower the Balance of your Home Loan each day the less the Interest Calculation is, and therefore less Interest is charged at the end of the month. When less Interest is charged it allows more Principle Reduction to occur, therefore your Home Loan Balance reduces sooner. This has a compounding effect each month.

Financial Institutions are motivated by profit as the primary factor – if you refuse to understand this you are destined to “work the treadmill” – the key is to understand how to ‘Get the compound interest to work for your benefit’.

You can’t count on good old fashioned hard work the way your parents did. Go to school, get a good job, do your work, don’t go crazy with spending, and everything will work out right? Not anymore!That advice may have worked in your parents’ day, but today you have to be smart with your money and cash flow. Not just a little smart, but super smart. You have to learn how to adapt smart debt management programs and you have to learn about them fast.

Your home loan will end up costing you over two or two and half times what you’ve borrowed in interest costs, fees and charges.

To pay off your home loan faster is no big task. You do not have to tighten your belt or start buying the cheapest toothpaste or stop taking the kids to the movies as this strategy is not sustainable.

To pay off your home loan faster is simply knowing how to use your cash flow and utilise a good debt management program whilst enjoying your life.

Things you should consider

This publication doesn't take into account your personal objectives, financial situation or needs. It

is important for you to consider these matters before making any financial decision and we

recommend you seek help from your Fast Repay Home Loan Mortgage Planner/Finance Coach.

http://www.fastrepayhomeloan.com.au