Published: April 05, 2008 - 01:00 PM
Working mums some of the hardest hit by rate rise
Ordinary households are now contending with their twelfth consecutive interest rate rise from the Reserve Bank in an environment of rising living costs. With petrol and grocery costs spiralling, the average family is struggling to control living costs and make ends meet.
Just two years ago, the official interest rate was 5.5%. With interest rate rises totaling 1.75% in two years, a household with a 30 year mortgage of $300,000 will be paying an extra $342 per month in mortgage repayments today compared with what they paid in March 2006. If the rate goes up another 0.25% to 7.5% a household with a $300,000 mortgage will be hit with a further rise of $51 per month.
The major banks have been quick to respond to the official interest rate rise, with some banks raising their lending rates more than the Reserve Bank’s rise to account for their own rising cost of funds as a result of the global credit crunch caused by the recent credit crisis in the USA.
David Power of ShopAround.com.au says that: “In this time of rising living costs it is possible for householders to save money on their budget without having to sacrifice their standard of living. A careful review of their spending can identify household savings. ShopAround.com.au offers a way for consumers to easily see how they can save money on their electricity and gas costs by offering a free service that allows and quick and simple energy comparison service. Consumers can then switch to a better deal with cheap energy for either their electricty supply or gas supply from our participating Victorian electricity suppliers.”
To save money and do a simple energy comparison to find cheap energy, cheap electricity and the best gas prices from our participating electricity and gas suppliers from Melbourne to Mildura take a look at www.ShopAround.com.au now!
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