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Don’t over-extend yourself

Research shows we tend to:

  • Be over-confident of our debt repayment ability
  • Underestimate likelihood of things going wrong

Causes of mortgage stress

  • Looked at ‘mortgage stress’ triggers
  • Did surveys and interviews
  • Assessed ‘initial’ and ‘final’ causes of missing repayments
  • Typically more than one reason

Investing for children

  • Start early and give them a head start

Make the most of super

Get the basics right

  • Track down ‘lost’ super
  • Consider merging multiple accounts
  • Review where super is invested
  • Consider time frame when selecting investment option(s)
  • Stick with a well considered investment strategy

 Protect your family

What are the possible consequences if die or disabled?

Where suitable plans not made

  • Sell or downsize home
  • Non-working spouse returns to work
  • Working spouse takes second job
  • Children may need to change schools or schooling arrangements
  • Cut down on luxuries eg holidays

Source: Understanding human behavior in financial decision making: Some insights from behavioral economics. Paper to accompany presentation to No Interest Loans Scheme Conference “Dignity in a Downturn” June 2009. Ian McAuley, Centre for Policy Development and University of Canberra Source: Mortgage default in Australia: nature, causes and social and economic Impacts. Authored by Mike Berry, Tony Dalton and Anitra Nelson for the Australian Housing and Urban Research Institute, RMIT Research Centre, March 2010

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