If you’re struggling to pay your home bills or mortgage, you’re not alone. Many people are in the same boat.
For the third month in a row, the Reserve Bank of Australia (RBA) increased the cash rate in July to 1.35 per cent.
As interest rates in Australia have risen three times this year already, home owners are starting to feel worried about their future.
This blog post will provide some tips on what to do if you find yourself in this situation. We are here to help during these changing times.
RBA Governor Philip Lowe recently warned Australians to be prepared for substantial interest rate rises over the rest of 2022, conceding he is not sure how high they might climb.
He said he expected inflation could reach 7 per cent by Christmas and it may not fall until the first quarter of next year. He also said the RBA would do what was necessary to get inflation back to between 2 to 3 per cent.
If you’re concerned about rising interest rates, it’s important to seek advice. At Orchard Finance Group, we may be able to find you a different home loan that better suits your financial situation or suggest tools to help you manage your repayments.
What is Mortgage Stress?
Mortgage stress is a term used to describe the financial strain that comes from having high mortgage repayments relative to your income.
It can be caused by a number of factors, including interest rate rises and personal financial problems.
Mortgage stress can have a significant impact on your quality of life, causing anxiety and relationship problems.
The Most Common Mistakes We See People Make When In Financial Difficulties
Wait Too Long
One of the main reasons people find themselves in financial difficulties is that they wait too long to get help. By the time they reach out for assistance, their situation has often become critical.
Ignore the Issues
Ignoring the issues and trying to “go it alone” can lead to feelings of shame and embarrassment, which can make it even harder to ask for help.
Ignore Warning Signs
Have you started thinking about getting a 2nd or 3rd credit card?
Maybe you’re starting to use your credit card more than you usually have in the past?
Thinking about adding more credit cards to help with debt is common. We understand that to some people it feels like it might help and might be an easy solution when feeling financially worried. We want you to think about this, adding credit cards may put you on a path of MORE problems and may not solve your problems but ADD to them.
This might be a sign that you need to talk to us about your loans.
Don’t Ask For Help
Another mistake people often make is assuming that they can handle their financial problems on their own. This is a dangerous mindset, as it can lead to further debt and financial hardship. You might not realise it, but there are experienced professionals ready to help you.
Orchard Financial Group want to help you, we want to make sure you can keep your home and afford to pay your bills.
If you are struggling to keep up with your bills or make ends meet, it is important to seek professional advice as soon as possible. There are many options available to help you get back on track, but you need to be willing to ask for help.
Waiting until you are in dire straits is not the answer.
What Is The First Thing To Do When You Start Feeling Like You Can’t Pay Your Bills or Mortgage?
Don’t wait. The sooner you get help the more options you will likely have.
If you’re worrying about paying bills and mortgage repayments in Australia, the first thing we tell people to do is talk to someone, we want you to pick up the phone and talk to anyone here at Orchard Financial Group. Michael Wills and his team are kind, friendly, understanding, non judgemental, trained and experienced. 07 54754500.
The first step is the hardest, just picking up the phone and admitting you are starting to feel worried can feel enormous, but it is an important first step you can make.
It’s important you know that you have options.
Our mortgage brokers may be able to help organise a hardship variation, which is a change to the terms of your loan that could make it more affordable.
For example, you might be able to extend the term of your loan or get a repayment holiday.
You may also contact your utility providers and explain your situation. They may be able to offer you some flexibility in how and when you pay your bills. Finally, it’s a good idea to speak to us about your current financial situation and we can then give you tailored and confidential advice about managing your money.
If you’re struggling to make ends meet, Orchard Financial Group can help you develop a budget and negotiate with your creditors. Remember, you’re not alone – we are here to help and we have plenty of experience in regards to this issue.
What Is the Second Thing You Should Know When Feeling Financial Pressure?
Don’t face it alone.
Talk to Michael Wills or any of our team members at Orchard Financial Group.
Talk to your partner.
Talk to your best friend.
Talk to a free government financial counsellor.
We will give you support. We do not judge. Over the last 26 years in the financial industry. Michael Wills has helped many people in the same situation.
Orchard Financial Group are not about finding quick fixes or temporary bandaids, we will work really hard to find a solution to your problem that is realistic and achievable.
We can literally be sitting with you while you talk to your lenders. We can help you work out what to say and how to say it.
We will help you look at your situation with fresh eyes and find all options available to you. It’s almost impossible to think of everything yourself, especially when life is feeling overwhelming and tough.
We communicate really clearly with our clients, check out what people say in our google reviews.
In Conclusion
If you’re struggling to keep up with your mortgage repayments, starting to worry about your financial situation or thinking you can’t pay your bills, it’s important to seek help early.
We are here to help you navigate your options.
Sunshine Coast Mortgage Brokers | Orchard Mortgage Brokers
We know a lot of people feel unsure and have a lot of questions. Orchard Mortgage Brokers want to help you navigate these current times. At Orchard Mortgage Brokers Sunshine Coast, we love taking time helping and listening to our clients.
So, if you’re worried about potential interest rate increases in the future book a “no obligation” 30-minute appointment with Michael Wills. Working with a professional like Michael Wills, who has 26 years in the finance industry, could help your feel financially confident.
There are a number of support services available, including financial counselling and hardship programs. These can help you get back on track and avoid losing your home.
Licensing statements: Orchard Mortgage Brokers (Qld) Pty Ltd ACN 671 112 137 Trading As Orchard Mortgage Brokers is an authorised Credit Representative 556459 under Australian Credit Licence 389328 General disclaimer: This page 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. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply
Further Reading?
Our Blog Post on Interest Rate Rise – https://orchardmortgages.com.au/interest-rate-rise-australia-june-2022/
https://moneysmart.gov.au/managing-debt/problems-paying-your-bills-and-fines
https://moneysmart.gov.au/managing-debt/financial-counselling