Where do you/ what do you do for work easytiger? I assume a broker or something along these lines if you know our commission structure?

[QUOTE=REXXXED;499903]Where do you/ what do you do for work easytiger? I assume a broker or something along these lines if you know our commission structure?[/QUOTE]

Yeah, I'm the BDM for Crystal Finance agg thru PLAN

Make's perfect sense then!

IMHO unless you are super disciplined dont go near a LOC. i.e. Because the limit never reduces (as opposed to a normal home loan) the temptation to keep redrawing and spending the money is massive. i.e. in 10 years you will still owe the same amount.

LOC are great for business overdrafts and things like that where there is a lot of money coming and going but for a normal person on wages they are danger.

My 2C

Brendon

[QUOTE=urabus;499931]IMHO unless you are super disciplined dont go near a LOC. i.e. Because the limit never reduces (as opposed to a normal home loan) the temptation to keep redrawing and spending the money is massive. i.e. in 10 years you will still owe the same amount.

LOC are great for business overdrafts and things like that where there is a lot of money coming and going but for a normal person on wages they are danger.

My 2C

Brendon[/QUOTE]

Yeah LOC's are good to use as an operating/buffer account and suit the self employed or people who get paid monthly or non regular commission etc

As an evergreen product (limit is maintained) and the potential to let the interest capitalise without making repayments*, it requires a bit of discipline as you say.

How are you with your credit cards?

*CBA for example have begun to request some form of minimum repayment contributions to LOC's since Jan this year

whs^^ you will get a lovely letter in the mail asking why no money has been going into your LOC recently....

I like the advantage of not having to worry about my other loans, having all the repayments for my other loans coming out of the LOC, then just concentrate on getting the LOC amount as low as humanly possible!

But then if something come's up out of the blue....like my Landrover engine cracking a head and i need access to some funds to order a new engine from Adelaide for instance, i can do so without needing to apply for more cashola.

A LOC is no good unless you are disciplined! The temptation is too strong if the funds are available!

Now if you are disciplined they can be great! Treat it like a car loan with high repayments and you will be miles ahead. No car loan will ever match that of a LOC on ya home loan but the key is to pay it off quickly and close the LOC once it is completley paid off but in the event you need to repair your car for some reason or other then the funds are available. GL

Personally I don't see why you want to end up in perpeptual debt with mortgages/lines of credits/car loans/credit cards buying things that you can't afford.

Sure get a loan for massive purchases (house) or when you have some tax effective accounting helping you offset the interest for a benefit... But I'd rather plow the cash into paying off a home loan and drive a cheaper car, than have a decent car and be a slave to the banks and interest rates.

But if you have to do it, I would take Brendon's advice on board. Lot's of people see a line of credit as free money after a few years and end up shit creek without a paddle.

Just make sure you marry a good accountant.

[QUOTE=EXPLICIT;499987]Just make sure you marry a good accountant.[/QUOTE]

old mans an accountant, a very good one at that, worked for michael wright and his sister. so thats no probs