It seems that the financial balance of many home owners was very fragile. Could the latest interest rate rise be the straw that broke the camel’s back? Ever since RBA announced its decision to raise interest rates I am seeing foreclosures mentioned all over the country – first in Queensland , and now in Victoria .
The banks say they are willing to work with people who have financial difficulties, but they need to talk to the ‘hardship unit’ as soon as possible. This is especially important because the big spending season of Christmas is ahead and there are likely to be more interest rate rises in the not so distant future – so basically the same amount of money will be coming into our pockets, but we should anticipate to be spending more.
If you struggle to pay the mortgage but hesitate about talking to your bank straight away, go to MoneyHelp website and find out what your options are. Despite the name, this website has nothing to do with lending money – they are a non-for-profit service managed by Consumer Action Law centre in Melbourne and subsidized by the Victorian Government.
This is a very helpful website – in fact they have prepared easy to use guides on how to ask for gas, electricity or water hardship variation by phone, and how to ask for mortgage hardship variation by phone , they also have sample letters you can use when approaching your creditor.
Apart from the website MoneyHelp also have a free financial counseling service – ring 1800 149 689 or send them an email (click here).
Do you find it tough to keep paying the mortgage? Leave a comment, share your thoughts.
