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Can You Really Pay Off Your Mortgage in 5.5 Years Part 3

Yesterday we presented you with the first four strategies for Stage One.  Keep reading the finally three strategies to help you achieve your goal – paying off your mortgage quickly.

(5)  Pay all expenses on a credit card and ensure that it’s cleared every month without fail.

imagesATDTOUR0To take it one step further, you then use your 55 days free interest credit card with the “small credit limit” to make all of your daily purchases (no cash advances).  You then arrange to have the balance on this card cleared on a monthly basis so that you pay no interest on the card.

Oh, how the banks just hate this, a credit card that they earn no interest off!  You then arrange to have the funds “swept” from either your redraw or offset account just prior to the conclusion of the 55 day cycle. This benefits you by the fact that the funds you would’ve previously used to pay these expenses are being used to reduce your mortgage balance for that full period.

Do not take cash advances as you will immediately be charged interest on the card.  When you need cash, you withdraw from either the redraw or offset account using an access card.

(6)  Apply for a PAYG variation (if applicable)

Many of us end up with a half decent tax return at the end of the year due to various reasons.  If you’re in this situation you can arrange to have the estimated return paid to you each pay cheque.

Once again, it’s important to direct this refund amount directly to paying down the mortgage by increasing your weekly mortgage repayments.

We can assist you in organising to get the tax refund paid to you in advance.  This is not something you should attempt on your own as mistakes can lead to large penalties from the ATO!

(7)  Direct any windfall gains directly towards the mortgage

imagesLJNZ86FRAny extra cash that can be directed towards the mortgage will make a huge difference to the amount of interest paid over the term of the loan and to the actual term of the mortgage.

As you can see, these are steps that we can all undertake quite easily and which we will guarantee could quite easily reduce the term of your mortgage by 10 years.  A 10 year reduction in a 30 year, $300,000.00 mortgage at say 6%, will save you interest of $131,029.00 which is a staggering amount.  And remember that’s in “after tax” dollars!!

Think of what you could do that with that extra money?  The possibilities are enormous!

Stepping up the Acceleration process!

 Contact us now if you would like to find out more now.

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