How Fortnightly Repayments Can Help Clear Your ANZ Debt

Short of a windfall from a lottery win, an inheritance from a long lost uncle or a visit from a magical genie, you may feel that there is no way you will ever be able to pay off your ANZ home loan any sooner. Did you know that there is a simple way to clear your debt sooner that doesn't require much effort from you at all?

It's not complicated and it doesn't mean you have to live off a grocery budget of $4.20 per week. The key to paying off your home loan from ANZ or another bank or lender is this: simply make the switch from monthly to fortnightly repayments.

That's it? You may be thinking it sounds too good to be true. So look at it this way. Making a payment to ANZ once a month means you make 12 payments in a year. It's not rocket science. Everyone knows there are 12 months in a year, but many home buyers don't realise that there are 26 fortnights. Making the simple switch to fortnightly repayments means that you make the equivalent of 13 monthly payments in a year, which is one whole payment more per year than you would make with a monthly payment plan.

It is common for people to get paid once every month, so for most home buyers it makes sense to have their ANZ home loan repayments deducted once monthly and they don't give much more thought to the matter. The difference that fortnightly repayments can make to your ANZ home loan is huge. By effectively making a whole extra repayment each year, you are working to clear your debt sooner, which means you could save thousands of dollars worth of interest charges and cut years from the term of your home loan.

Find out about the savings you could make with fortnightly repayments by speaking with your financial broker, or experiment with an online calculator such as the ANZ Loan Repayment Calculator. With just a small switch, you could be enjoying freedom from your ANZ home loan debt sooner than you think.

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