Falling rates offers opportunity to pay off debts, says lender
Consumers should take advantage of interest rates having fallen to their lowest levels in six and a half years to pay down all their debts, one lender says.
The Reserve Bank of Australia (RBA) on Tuesday cut the cash rate by 100 basis points to 4.25 per cent, its lowest level in six and a half years.
It is the fourth month in a row that the RBA has cut interest rates in a bid to head off the effect of slower world economic growth on an already soft Australian economy.
Resi Mortgage Corporation head of consumer advocacy Lisa Montgomery said that despite the falling cash rate, consumers were still racking up high interest debts on credit cards.
“If borrowers who are still highly geared take the time to compare their mortgage and credit card rates and what each is actually costing them, they can act now to shake off the remaining vestiges of `affluenza’ and get rid of their high interest rate credit card debt,” Ms Montgomery said.
“Outside of paying off the credit card entirely and reducing its limit, the other clear option is to consolidate their debts into one low interest debt.”
Consumers should act now before the burden of the Christmas shopping spree, Ms Montgomery said.
“Borrowers need to acknowledge times have changed and that living within their means is now very much the new black,” she said.
AAP
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Unimpressed December 2, 2008
Well that is fine advice from RESI Consumer Advocate Lisa Montgomery. It would ring true as an authentic comcern if Resi had passed on the previous 2 interest rate cuts.
Get real Lisa.