As we bid farewell to the holiday season, it’s time to shift our focus to a critical aspect which is personal finance – managing our finances strategically to achieve our goals for 2024. In this ever-evolving economic landscape, lenders closely scrutinize unsecured lending practices such as hire purchase, store cards, after-pay, lay-buy, personal loans, and credit cards. While these financial tools offer easy access and quick approvals, the temptation of frequent use can lead to an accumulation of debt.
The real challenge arises when it comes to paying off a substantial debt, exacerbated by the interest costs that accrue with each passing day. Minimum or scheduled payments often fall short in making a significant dent in the outstanding balance. Lenders not only scrutinize the current debt levels and credit limits but also analyse the spending and repayment behaviour for the recent 90 days.
Consumer defaults are on the rise, as confirmed by Centrix Credit Indicator Report (January 2024)*, attributing this trend to sticky high-interest rates and the rising cost of living.
Whether it is your first home or building your property nest, it is paramount that you maintain good repayment history on your credit card. Dishonours, missed loan repayment does have detrimental effects on the new lending application and could delay the process of achieving your financial goals.
To navigate the financial landscape successfully in 2024, consider the following steps:
Self-Assessment: Conduct a thorough self-assessment. Ask critical questions about your financial capabilities in the upcoming months. Can you manage your payments effectively?
Interest Cost Minimization: Aim to minimize interest costs associated with your debts. Explore strategies and financial tools that can help alleviate the burden of high-interest rates.
Property Portfolio Building: Consider redirecting saved interest costs towards building your property portfolio. This proactive approach can contribute to long-term financial growth.
In the scope of personal finance, solutions abound, but the key question remains: When will you take the initiative to find the right solutions for yourself and your family? As we embark on this journey into 2024, let’s prioritize financial well-being, making informed decisions that pave the way for a secure and prosperous future.
Remember, the solutions are available; the question is when you wish to find the solution for yourself and your family.
Reach out to SK Financial Group to navigate through your 2024 journey.
Reference: *https://www.centrix.co.nz/wp-content/uploads/2024/02/Centrix-Credit-Indicator_January-2024_Final.pdf
Disclaimer: The article should not replace or used as a substitute for personalised financial advice. It is recommended that you seek independent financial advice based upon your needs, goals, and situation. SK Financial Group and their employees cannot be held accountable to the information in the article. We are not responsible or liable for accuracy of data, any information, omissions or errors. Please check our disclosure statement on our website for full information, alternatively you can contact us for full disclosure, terms, and conditions.