Category «Borrowing»

Taking Care of Your Finances

Welcome to a new year – it has certainly started off with the huge degree of volatility. Much of it is due to uncertainty about economic conditions generally thanks to Trump, Brexit, and the ongoing conflict between America and China. But as we move into 2019 with all its hope and uncertainty, remember that there …

Noel’s Credit Card Advise

Christmas is nearly upon us – unfortunately, it’s potentially the most dangerous and most frustrating time of the year. You can spend eleven months doing all the right things and making solid progress, and then find all your good work destroyed as the holiday season hits and you get caught up in the inevitable spiral …

Interest Only or Repay Some Principle?

I recently received an email pointing out that I often recommend interest-only loans for investment, and asking what the purpose of the strategy is. In the reader’s view, it seemed futile to take out a loan that you would never pay back. The purpose of using an interest-only loan is to minimise your monthly interest …

Borrowing for Income Producing Assets

Today we’ll talk about a strategy that can help you build wealth – borrowing. Most Australians borrow – either for logical or emotional reasons. A logical reason is to buy a home now because you believe there will be long term growth – an emotional one is to get that latest big screen TV today …

Protecting Yourself Against Interest Rate Rises

Bank interest rates are on the rise, and it’s got nothing to do with any action by the Reserve Bank. Simply, the interest rate cycle has turned, and rates all around the world are going up. As a consequence, the cost of funds sourced by our banks from overseas is rising as well. Unfortunately, our …