Four steps to put you back on right path

WE ARE only one week into the new year but there’s a good chance your resolutions are already looking shaky.

Even if you have failed, pick yourself back up and give these four financial steps a go, to try to leave yourself better off in 2019.

1 HOME LOANS

One in three Australians has a mortgage and it’s likely to be their biggest debt.

Check your interest rate and if it doesn’t start with the number three, phone your bank, says comparison website comparethemarket.com.au’s Rod Attrill.

“Talk to a broker and find out what you can or can’t do and see what options are available,” he said.

Compare rates online and contact your bank’s mortgage retention team – tell them you can get a better deal elsewhere.

2 SUPERANNUATION

Millions of Australians have multiple super accounts and are paying unnecessary fees.

AustralianSuper group executive of product brand and reputation Paul Schroder said the best thing you could do is consolidate all your accounts.

“People on average have nearly three accounts, and it’s costing them in fees, and some of these funds might be underperforming,” he said.

3 REVIEW CARDS

Rolling into 2019 with credit card debt is familiar to many consumers. Mr Attrill urged cardholders to take immediate action to wipe out this debt.

“Use zero balance transfers that are available for periods of up to 24 months,” he said.

“If you lob into January with a big card debt, transfer it on to a balance-transfer card with a zero per cent interest rate.”

A balance-transfer card is when you transfer one credit card debt to another and enjoy a honeymoon interestfree period.

4 SAVINGS BUFFER

Having a savings buffer is vital, particularly if something goes wrong unexpectedly.

The amount you need tucked away will depend on your situation, but often experts say people should have three to six months of easily accessible savings. Redundancies are becoming far more commonplace so it’s critical you are prepared for the worst if you find yourself out of work.