Pay cards & loans first then mortgage

Senior financial adviser Sarah Riegelhuth, of financial advisory firm Wealth Enhancers says the sooner you can start paying extra on your mortgage the better.

“The point in which you pay the most interest is in the first years of your loan because the principal is at its highest point. The sooner you can get onto reducing that principal the better off you'll be,” Riegelhuth says.

“It's just costing you money; you don't get anything in return,” she says.

“Usually paying your home loan would be the first step to focus on. Unless of course you've got any other debt that's not tax deductible that's at a higher rate of interest, like credit card debt or a personal loan, then you'd pay that off first, and then your home loan.”

Source: The Age

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