Do a comprehensive Income and Expenditure to see where your money is going. Cancel all unnecessary expenditure, and those things that you can live without.
Extend the term of your bond, and once you’re comfortable with the repayments and in a better financial situation, the term can be re-negotiated.
Negotiate to pay the interest portion of your bond only, until your situation improves.
If you have been using your home loan as a savings account, speak to your banker about using the advance portion to assist temporarily to cover the bond instalment. In other words, you can suspend monthly payments until the advance portion has been utilised.
If you are a long term loyal client to your Bank, negotiate with them to defer the payments for say 3 months. This will however incur extra interest, as the interest will capitalise, so this should only be used in dire circumstances and over the short term.
Research the fixed rates the Bank has to offer, as fixing your repayment rate will offer certainty in this high interest rate market.
If a bulk of your expenditure is on investments such as unit trusts or endowment policies, arrange with your service provider to suspend payments until your position improves. If the investment has been going for a while, investigate what amount can be surrendered. It is prudent to rather keep your home than the investment. Bear in mind, though, that Life Policies should not be interfered with, as they product will protect your family in the event of death.
If you have a spare room that is not being used, think about taking in a boarder. If none of these measures are successful, your last resort would be to sell your property. If you are forced into this position, bear in mind that the market will turn around. If you get yourself out of debt and start saving in the interim, you’ll be able to afford to purchase property again.
Tips on Retaining Your Property in the Current Market
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