In fact, over 30 years at an average interest rate of 6% you can end up paying double what you borrowed back to the bank. <\/p>\n
However, Palman cautions against simply shortening your loan term to pay it off faster and save on interest, because higher repayments can come back to bite you if your situation changes.<\/p>\n
\u201cThat\u2019s where we\u2019re having to go back to the bank and go, \u2018oh my gosh, I can\u2019t make my payments\u2019. What that involves is actually going to the hardship team at the bank and pleading with the bank on your knees. Can you give me a mortgage holiday or can I go interest only?\u201d Palman says. <\/p>\n
She says different loan structures, like a revolving credit, can allow extra repayments, interest savings, and flexibility \u2013 but they need to be managed carefully. <\/p>\n
\u201cIt can turn into a \u2018revolting credit\u2019 if we don\u2019t have guardrails and systems and structures and the discipline around paying that back.\u201d<\/p>\n
Palman says it\u2019s not necessarily about earning more, it\u2019s about flexing your behavioural muscle to build better habits, and the systems to support them.<\/p>\n
\u201cIt might be that extra trip to the supermarket. It might be buying your lunch again for the week. It could be too many takeaways or paying too much on your utilities. <\/p>\n
\u201cYou know, those little \u2018one percents\u2019 across the board that you won\u2019t actually miss,\u201d Palman says.<\/p>\n
\u201cYou\u2019d be surprised what a little does across the board and how that compounds and ends up being really amazing compound gains that you make.\u201d<\/p>\n
Listen to the full episode of The Prosperity Project<\/a> for more <\/p>\n The podcast is hosted by Nadine Higgins, an experienced broadcaster and a financial adviser at Enable Me.<\/p>\n You can follow the podcast at iHeartRadio<\/a>, Apple Podcasts<\/a>, Spotify<\/a>, or wherever you get your podcasts. New episodes are released every Monday.<\/p>\n","protected":false},"excerpt":{"rendered":"In fact, over 30 years at an average interest rate of 6% you can end up paying double…\n","protected":false},"author":2,"featured_media":88693,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[6935,48039,138,6932,66984,8615,10666,63059,1644,49530,5269,8455,26098,12469,56387,4277,5829,130,66983,111,139,69,5908,6046,19257,7676,6115,8244,9361,312,223,61,1533],"class_list":["post-88692","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-adviser","tag-borrowers","tag-business","tag-cash","tag-changer","tag-come","tag-cuts","tag-faster","tag-financial","tag-forget","tag-game","tag-getting","tag-heres","tag-interest","tag-isnt","tag-key","tag-many","tag-more","tag-mortgagefree","tag-new-zealand","tag-newzealand","tag-nz","tag-official","tag-potential","tag-rate","tag-rates","tag-real","tag-recent","tag-relief","tag-says","tag-the","tag-to","tag-will"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/88692","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=88692"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/88692\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/88693"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=88692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=88692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=88692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}