In April 2009 mortgage stress dropped by 2.8% indicating that the recent Government stimulus payments were most likely used towards home loans.
The total number of households struggling with home loan repayments fell to 568,000 compared with a peak of 900,000 in August 2008.
The stimulus payments have had a noteworthy and positive impact for those who are finding it difficult to make payments on their home loans. However the positive outcome is only temporary and by the end of the year, we may see similar circumstances to those prior to the stimulus packages, especially as we see unemployment rates continuing to rise. Another 400,000 homes could be in severe stress if unemployment reaches 7.5% by the end of 2009.
Managing Home Loan Stress
Having a home loan can be stressful for many individuals, regardless of your property value or location. Many factors create home loan stress, such as an unexpected life event, unemployment, or illness.
To help ease the stress of having a home loan, you need to action two key things:
- Create a weekly budget based on your current financial situation and goals
- Try to protect yourself in advance. Whenever you have excess money (e.g. stimulus package, or a work bonus), use it to make additional repayments on your home loan
If You Have Home Loan Stress
If you find yourself struggling to make your home loan repayments, or feel as though it is beginning to become difficult, you should talk with a financial company today to learn about the options available to you. You may be able to consolidate debts or refinance your home loan.
To find out more about your home loan and debt options, call the Australian Lending Center today on 1300 138 188 and speak with one of our friendly consultants.