Monday, 18 January 2016

A setback, but I'm not sorry

I've made a fairly significant purchase.

It required me to refinance my loan to take an additional $5000 on top of the existing balance.

There was the payout figure, plus a $150 loan processing fee, and then the $5000 added to my balance.

I also elected to take out the loan insurance, but I'm going to call and cancel that tomorrow.  The loan insurance is payed up front for the full term of the loan (7 years) and you pay interest on the whole lot - I was feeling particularly risk averse when I took it out but on reflection its not needed. There's a 28 day cooling off period, so I can cancel it now with no penalty.

On the upside, my interest rate is lower than before - apparently I qualified for a discount by virtue of my employer being part of a scheme at the bank I'm with. So that actually will save me money over my last loan.

I've also paid out completely my credit card now, and my repayments will be the snowballed $600 a fortnight, so the extra money will be repaid in no time.

I'm not going to detail what my purchase was, but I will say that I am not sorry, and I'd do it again tomorrow.

Updated balances later this week when I've taken that insurance off my loan and made this fortnights payments.

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