What the banks don’t tell you
“Commonwealth Bank $9.1 billion, Westpac $8.2 billion, ANZ $7.8 billion and NAB $5.8 billion.”Sydney Morning Herald, August 21, 2016What your bank won’t tell you that could save you ‘000s.We all know banks make huge profits every year.Who do you think they get this profit from? You and me, their account holders. Banks set up our accounts, loans and credit cards to maximise their profits, yet when we want a loan, we then ask the bank what sort of loan we should have! It’s like asking the mouse where you should store the cheese, isn’t it?Try this quick test.Have you been paying your home loan off for years and feel like you are getting nowhere?Take this quick test! Add up the amount you have paid to-date on your home loan: e.g. say $2,000 x 12 months x 5 years = $120,000. If you look at your home loan statement you will see that your loan may have only reduced by about $5,000 or so in that time. Now that’s an OMG moment!That means it’s time to do things differently. To change the way you are doing your banking. So here’s how you should be doing it:Step 1. Get the right type of home loan for fast debt reductionStep 2. Set up a Cash Management System to track your spendingStep 3. Use your credit card correctly and use the banks money for freeStep 4. Bank your pay into your loan reducing your principalStep 5. Stay organized and reap benefits like these below.Do it right and you could be putting a lot more money back in your pocket and not the banks. If you were able to pay off your home loan in 15 years, not 25 that means an extra $124,000 for you. That puts you back in control not the banks.