When the presents have long been unwrapped, the turkey is a memory, and the beer and wine bottles are ready for recycling, the Christmas financial hangover can come crashing in during January. That overspending, sneaky purchases on credit cards, or IOUs left hanging can put a real dent in your finances. The new year is a new opportunity to start fresh. The Fundo team got together to give you five easy and breezy financial goals you can keep as your New Year’s Resolutions!
Make Budgeting A Habit
It’s conventional wisdom that says New Years Resolutions fail because they aren’t SMART: specific, measurable, achievable, realistic, and time-bound. One specific habit is to do an annual audit of your finances – find out where all your money goes in and out – and then draw up weekly or monthly budgets on a fixed date so you aren’t overspending. Once you have a budget, you can set a specific goal. This may be to save up a deposit for a car, a house, or even to splurge on a big ticket item or a holiday. Also remember to set aside some money for an emergency fund or investing. Saving for the sake of it gets very boring, very quickly!
Review Your Recurring Bills
At the beginning of the year and Financial Year (July 1) you should look at your recurring bills – be it subscriptions to apps, utilities providers, insurance premiums – and figure out if you can either eliminate the ones you aren’t using or find cheaper alternatives. For example, do you pay for a big mobile data plan when you work from home and use wi-fi most of the time? Saving $5 per month means $60 per year – which could be better spent on micro investments or savings.
Check Your Credit History
Did you know you can check your credit history four times per year for free? If you aren’t sure about your credit score or your credit history, you should get a handle on it in the New Year. Banks, lenders, and other credit providers (like telcos) check your credit history to figure out if you’re a responsible borrower. If your history has mistakes on it, it’s your responsibility to clean them up. Improving your credit score means more favourable interest rates when it’s time to make a major asset purchase.
Pay Off Debts
Finances often suffer from “death by a thousand cuts” from small debts chipping away at our savings and desire to get ahead. If you have many small, recurring debts (like credit cards) it’s best to pay them off as quickly as possible to avoid mounting debt. One way to clear all your debts is to consider a debt consolidation loan, which is a personal loan that pays off all your small debts and combines them into a single payment that will eventually fall to zero. (Fundo could help! More on that later.)
Plan Your Purchases
One New Year’s resolution that is sure to work is planning your purchases ahead of time, thanks to the new budget you created. Planning your meals means less chance of splurging on expensive takeaway and means you can buy in bulk around weekly specials, saving even more in the process.
However, sometimes even the best laid plans can be interrupted by the unexpected. If you’re starting your New Year’s Resolution journey towards fitter finances and get hit with an urgent repair bill for your car or home or an appliance breaks down and needs fast replacement, or you need to cover a medical, dental, or flight bill, you can borrow anywhere between $500 to $5,000 from Fundo. You could even use a Fundo loan to consolidate other debts, like credit cards. It’s easy to apply and you could have the funds in your account within 60 seconds (pending loan contract approval and PayID enabled on your bank account.) If you need a leg up with funds, Fundo it!
Fundo Loan FAQs
Are there any restrictions on who can apply?
To begin a fast and secure application for a quick cash loan with Fundo, you must fulfill our lending criteria.
- Must be 18 years of age or older
- Residing in Australia
- Earn at least $1,000 every two weeks – Centrelink recipients are welcome!
- That we can check your income, if need be
If this resonates with you, go ahead and start your three-minute application now!
I have bad credit, can I apply?
Yes, we’ve helped thousands of Australians with bad credit get the funds they need to see through a rough patch. Sometimes, Fundo skips the usual formal credit check process. We take a look at your current financial situation and how comfortably you can repay the loan. This approach opens up our loans to more people, so even if your credit history isn’t perfect or you’re on a tight budget, you can still apply.
What is debt consolidation?
Debt consolidation is the act of taking out a personal loan and using the proceeds to pay off smaller, revolving debts with high interest, such as credit cards. The idea is to wipe out the credit card debt, close the account, and pay down the personal loan over time. Otherwise, paying off the minimum will just stack on more interest which can blow out to thousands, if not tens of thousands of dollars. Most personal loans will have lower interest rates compared to credit cards. If you require more than $5,000, you may have to apply with a bank or credit union, as Fundo only offers small loans up to that limit.
What term should I choose? Is longer or shorter better?
It depends what your goal is. Opting for a shorter loan term means you’ll be making payments over fewer instalments, which means lower interest charges than opting for a longer term. Just a friendly reminder that there’s still an establishment fee to take care of with each installment. If you choose a shorter payment plan, you’ll notice that each payment will be a bit higher than if you chose a longer one. It’s really important to keep track of your repayment terms, as missing a payment or being late can lead to some challenges. Find that sweet spot and make sure you are comfortable with whatever plan you choose!
