Try To Service Your Debt Before You LeaveOne way to minimise your financial obligations is to repay as much of your personal debt as possible while you’re still on home soil. Servicing your debt as soon as possible will help you reduce the amount of interest you’ll have to pay on the loan and it will also relieve you from additional financial pressure once you reach your new destination.
Whether it’s your credit card, mortgage or car loan, get a headstart on your debt by making regular extra repayments on top of the minimum repayment amount. Obviously, you can do this before you leave as well as during your time overseas.
For example, if you had a $300,000 mortgage with 5.12% interest and you made an extra repayment of $250 a month starting from your fifth year, you’d save over $55,000. Plus, you’d shorten your loan term by five years and nine months.