Article

in

Genworth

Publication

-

The

perils

of

using

unsecured

loans

or

credit

cards

for

a

deposit

I was invited to write for Genworth on the matter of using debt to fund deposits (which should be provided in cash). I have come across this once or twice before when providing financial planning advice to clients in Sydney. With the high cost of living, it can be difficult to put money aside and save for a deposit. It is often extra frustrating for these people as they could service a home loan (sometimes the rent they pay would be more than home loan repayments) but cannot get the loan from the bank as they can't get the deposit together.

Through a strict budgeting and cash flow program, there is always ways to save a few extra dollar towards the deposit, every cent counts and will compound in time to the deposit needed.