We are living in unprecedented times. As such I just wanted to reach out and let you know that I am available (via phone, email, Facetime, FB Messenger, WhatsApp) if you want to chat about your finances at this time. I have also recorded a short video with a couple of tips for those of you who may have suffered a loss of income and are wondering about your options (also summarised below).
There has been a lot of focus on the hardship provisions (i.e. 3-6 months repayment holiday) being offered by the banks to those whose income has been affected by the Coronavirus. However, I suggest this be viewed as a last resort.
If you have available redraw in your home loan I suggest you draw out a cash buffer into your transaction account. Also you may wish to contact your lender to ensure you are only making the minimum repayment. Given the recent reductions to variable rates, which don't automatically trigger a reduction of your repayment, you may able to lower your repayment commitment.