Debt Tip

Debt & Credit Tips

Insider tips from ex-debt collectors and credit managers

Debt Tip 1: How Australians Can Manage Mortgage Rate Spikes

A practical guide for homeowners facing rising interest rates — with strategies to cut costs, refinance smartly, and regain control of repayments.

Insider tips on how Australians can manage mortgage rate spikes:

  1. Shop around for the best mortgage rates – Compare across lenders. A lower rate can save thousands over the life of your loan.
  2. Consider refinancing – If you qualify, refinancing to a lower rate can reduce costs. Always factor in fees before deciding.
  3. Make extra payments – Extra or biweekly repayments reduce interest and shorten loan terms.
  4. Consider a fixed-rate mortgage – Provides stability and protection from further rate rises.

👉 Remember: Choose the option best for your financial situation. If you’re worried about repayments, contact Credit Reboot for guidance.

Debt Tip 2: How to Manage Credit Default Payments

Defaults can remain on your credit file for 5 years, even after payment.
 
 

Paying off a default doesn’t automatically remove it. In most cases, lenders still see you as high risk.

👉 Tip: If you do pay, negotiate removal of the default from your record as part of the settlement.

Debt Tip 3: Mortgage Reduction Strategy

Small changes in repayment schedules can lead to big savings.

Switching mortgage payments from monthly to weekly cuts interest and builds equity faster, often reducing your loan term by over 10 years.

👉 Tip: Even modest extra or weekly payments can significantly reduce long-term costs.

Debt Tip 4: Credit Enquiries Affect Your Score

Each credit application can lower your score.

Every enquiry for a loan or card can drop your score by 50–100 points, approved or not. Multiple enquiries within a short time compound the impact.

👉 Tip: Research first, then apply only when confident about approval.

Debt Tip 5: Late Payments Can Affect Your Credit Score

Even short delays can leave a lasting impact.

Being just 14 days late can lower your score by 50–100 points and remain for 2 years.

👉 Tip: Set reminders or direct debits to ensure payments are never late.

Debt Tip 6: Mortgage Arrears and Late Payments

Banks may use your own savings to cover arrears.

If you fall more than 60 days behind, banks may draw from your offset or savings accounts to cover missed payments — sometimes without notice.

👉 Tip: Avoid holding large savings in the same bank as your mortgage if you are behind on repayments.

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