Money, Money, Money: Saying FU To Interest Rates
Sep 10, 2023
By Guest Contributor: Brooke T
I was so fed up with soaring interest rates and inflation that I embarked on a mission to uncover some easy “AF” tactics to tackle the money squeeze and ride out these rate storms.
The economists predict rates to drop sometime between mid to late 2024 and if I buy into their crystal ball wisdom (which is a big "if"), then I figured I just needed to weather this for the next 12 months.
Considering rates have skyrocketed 12 times since May 22, it’s been a daunting extra $1,217 per month ($14k annually) for my $500k ish mortgage.
So, I made it my missing to work out how I could claw back as much of that $14k as possible.
Here have been my moves so far.
Move 1: Taming the Bank Dragon
I started with a phone call to my bank, and a semi-confident: "Hey, any chance I could grab that 5.79% rate you advertise on your site? Mine’s currently sitting at 6.19%."
After some not so amazing hold music they came back and offered me 5.99%. A win? Kind of. But not what I needed so I listen to my inner voice and asked him:
"Can I just get the 5.79% please?"
The dude paused, then rabbited on with some technical jargon and why the couldn’t do it.
I did want to shout “have you seen the increase in petrol you %$#@” but I don’t. I had my big girl pants that were laced with dignity and I said instead:
“Can you escalate to your boss? I'd hate to leave as a customer..."
So I got the 5.79%, equal to $2k per year. Not bad, but not quite the $14k I was hoping for.
Move Two: Exploring Fresh Horizons:
Why not just jump ship and take my business elsewhere?
Amidst the choices, I called HSBC and they offered to match my 5.79% plus a $3,288 cashback.
Ka-Ching!
Year one: I’d save about $5,288, and after that, $2k annually. Of course there’s a catch here and there, but it adds up to substantial savings so I’m very interested.
Now…to find the time to transfer. I decided to leave that for another day but it is on the personal (never ending) life admin list.
Move Three: My Bold Ask
So, I chat to a friend and she wisely says, why not just make up the $14 with a payrise?
What a great idea! To be honest, this is a novel concept for me because I haven’t asked for one in years.
When I look at the numbers, I make $121,500, and to recoup that interest hike of $14k, I'd need an extra $21,564 (a quick visit to the pay calculator and ATO website helped with that).
So my plan is, and this is in progress so I’ll have to update you in the coming months, is to persuade my manager (who usually sports quite a resistant stance) to increase my salary.
That, along with moving banks and I feel confident I’m on the right track. Stay tuned for the outcome!
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