Mortgage Battlers Need to Get Out Now

I read an article last week that had me worried about both the girls in Wagga who have already refinanced a couple of times in the last couple of years.

Those home owners feeling the pinch from rising interest rates and living costs need to put their house on the market now because things are about to get much worse, Wizard Home Loans founder Mark Bouris said. He said inflation pressure and rates rises had made the repayments calculations people made when entering into a home loan only a few years ago were now not worth the paper they were written on - and urged home owners to "get their heads out of the sand" and realise the trouble around the corner.

I have plenty of friends who have taken advantage of bank's easy lending of late and have done those renovations they've always wanted, or got that reverse cycle air conditioning throughout the house. (Something I wish I too could get done at the moment.)

The Daily Telegraph reports rising inflation has gouged $86 a week out of the average household budget, meaning that the tax cuts would have to be $34.61 a week higher if they were to leave a typical family with the same disposable income they had when the cuts were announced on October 14 last year.

If that family drives two cars they will an extra $18.50 a week on top of that to cover increased petrol bills. The paper's calculations show the three interest rate rises that occurred after the tax cuts were promised have cost the average family $38.25 a week.

Childcare fee rises due this week will cost a family with two children, one in long day care, another in after school care, $23.40 a week extra if they use three days care. Grocery price rises are costing families a further $6 a week.

I'm feeling the pinch too and our fridge isn't looking too healthy lately. Gone are the little extras that once it was nothing to throw in the shopping trolley. Now I'm telling the kids to put things back. Every week it's something else that's gone up, especially petrol.