This article is brought to you by ME.
Most of us know how expensive the holiday season can get – travel, entertainment and gifts quickly add up. Here are some tips to help you borrow money this silly season.
Credit cards
Credit cards can be great for managing monthly cash flow, giving you instant access to relatively small amounts of money. Most have interest-free periods so if you repay quickly, borrowing is at no cost.
But if don’t pay off credit cards on time, the interest can add up fast. Also, be wary of introductory credit card offers that advertise low or zero balance transfer rates for a short-term, as the rate will almost certainly jump up.
Personal loans
Personal loans can be useful for purchases of up to around $50,000. Repayment is generally between one and seven years and automatic payments from your bank account, usually fortnightly or monthly, can be arranged – useful if you find it difficult to budget. Make sure your loan lets you make extra payments without penalty.
Home loan top-ups
Another way to borrow larger amounts of money is through your home loan. You can do this either by applying for a home loan increase (a top-up) or by withdrawing money you’ve already paid into your home loan (a redraw). The advantage of using your home loan is the money you’re borrowing is being repaid over a very long period and at a lower interest rate to a personal loan or credit card. However, if you pay off the loan over a long period, the total amount you pay in the long run could be much higher.
To talk through borrowing options, call ME on 13 15 63.
This article is brought to you by ME. For more information, please visit www.mebank.com.au. Members Equity Bank Limited ABN 56 070 887 679.
The products or services being advertised are provided by third parties not REI Super and therefore will not be the responsibility of REI Super. REI Super may invest in these third parties but does not receive any payments or commissions from these organisations as a result of members using the products and services. Members should make their own assessment and seek professional advice as to the suitability of such products or services for their individual needs.
This information has been issued by Members Equity Bank (ME Bank). This information does not take into account your situation and you should consider if these products are appropriate for you.