Forget the bank – we want gadgets and holidays

Forget the bank – we want gadgets and holidays

Posted on Monday, December 03 2012 at 2:25 PM

A survey released today shows half of homeowners who’ve missed a mortgage payment did so to pay for whiz-bang gadgets for their home.

According to the study published by, another 40 per cent of repayment dodgers admitted to
using the cash to fund a family holiday.

The comparison website’s publisher Jeremy
Cabral says the consequences of skipping a home loan repayment can be serious.

“It can be tempting for homeowners to hang
onto their cash over the coming weeks to pay for Christmas gifts and holidays,
but be warned – this comes with serious implications,” Cabral says.

“You can get hit with additional fees, a
higher interest loan or in some cases be required to pay the balance of the
entire loan immediately.”

Penalties vary from lender to lender but if
you’re dodging the bank’s calls or ignoring letters, the punishment might be
swifter, he says.

Cabral says the lender will likely pass on
the cost of managing your missed payments, which could be as much as $55 per
month. Dishonour fees might also be applied to your loan.

Diverting your repayments to flashy goods
or a getaway isn’t worth the hassle.

“Homeowners should take the opportunity to
take control of their finances and ensure they’re getting the most value for
their money,” he says.

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