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How to make your affordable loan even more affordable

How to make your affordable loan even more affordable

“Hey congrats! Well done on getting that loan you were after and we can’t wait to see your holiday/new car/festival/reno/fashion/fitness pics”.
That’s the response that captures the upside of a successful loan application. Pretty much umbrella drinks, cruising around town, cool music and events, stuff for the house, stuff for you and stuff that keeps you looking and feeling great. But there’s another side to all of that.
Once you’ve had the fun or the works been done, it’s time to pay the piper. In this case, “piper” means your lender. Which is fine. You knew what you were getting into, it’s turning out to be exactly what you signed up for so, all you have to do is continue to make those repayments for the term of your loan. And that’s all well and good. Yes, there’s some belt tightening and perhaps some low level anxiety, stress and a dollop of FOMO but there are also some easy ways to lessen the burden (no matter how light or heavy it feels).
Rather than taking the machete to your discretionary spend budget and living the monk life for the term of your loan, the name of the game might just be “adjustments”. Yes, adjustments speak more to maintaining but moderating your lifestyle without having to make wholesale changes. Afterall, you secured a loan to enhance your lifestyle, not simply create a “moment” and then suffer for it later.

Here are 3 ways to make your repayments – even easier
It’s a simple list that’s more of a thought-starter than an instructional. The aim here is to get you thinking, in some detail, about some of the places you are always, putting your money and asking yourself, “could I comfortably modify that spending and what if I did?”

  • Easy on the avo’. We hear that from time to time. It’s not necessarily an instruction to the cook behind the café counter to take a slice or two off the eggs and toast, it’s more about taking a longer, harder look at that $10-$18 breakfast ritual. Avo’s great, most people agree on that but it’s also pricey when it’s peeled and sliced up for you and placed on toast (similar to what you have a home) and eggs (similar to what you have at home). You can probably see where this is heading: preparing your own weekend brunch once in a while or eating breakfast at home more often could probably save you around $100/month quite comfortably. Just saying.
  • Coffee beans at home and the odd instant. Nothing new here. First, we freely acknowledge that for many people, a morning and even a midmorning coffee is beyond essential. We get it. But let’s be real, for some that’s a $10/day habit – everyday, including weekends. At that rate, despite the wondrous talents of your favourite barista, it might help to buy some beans for home and think about a small home coffee machine. Why would you do that? Well, if you’ve halved your spend, you could be looking at another monthly saving of $100 or more per month. That woke you up, didn’t it?
  • Let leftovers lighten the load on your repayments. Let’s face it, when people talk about resorting to leftovers, they often use the word “resorting” which suggests they simply had no other choice than to wrap up the dinner plate scrapings in plastic and plunk them into a lunchbox – gross (not the leftovers but the description). Making a conscious choice to cook a little extra with a view to sealing an extra portion in your airtight lunchbox and enjoying it on your break is not something you resort to, it is something you choose to do. By the way, if you choose to do this just twice a week, saving yourself anywhere between $20-$30, you could find yourself relishing around $100 off your planned monthly repayments. If you’re the type that likes to eat out most nights, that $100 is only the beginning.

It’s funny, oftentimes there is a sense that you can afford the repayments on your cash loan but because it might be rare that you take a look beneath the surface of your finances, it may not be obvious as to how. There may be a reliance on “gut feel” (“I’m doing alright, shouldn’t be a problem) and sure enough, whilst filling out your online application, it’s plain to see that all is well. However, what we often miss is how much easier our repayments schedule could be if we made some modifications to our lifestyle.

For us, here at MeLoan, it’s all about looking at and understanding your bigger picture and making it work for you.

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