With the current financial crisis, everyone is worried about how they can get through the increased loan payments and the costs of living. Adam Humphreys Director of Finance at LZR Partners talks about what he is hearing in the market and what you can do about it.

The barbecue discussion.

This is the barbecue discussion that people are having. You know, you’re having a beer on a Sunday with someone, and they say, ‘oh, what’s happening out there?’ Suddenly I’m worried about it because our repayments have gone up, and our cost of living is going through the roof. Your basic groceries, insurance, and utilities are going through the roof, things are moving very quickly.

Don’t put your head in the sand.

You can’t put your head in the sand and hope it sorts itself out. You’ve got to get on the front foot and look what you can do. It’s not just reviewing your lending, it’s also your insurance where you can save money and utilities. You should be asking the question everywhere. Where can you get discounts and savings?

Look at everything.

Yes, look at everything. If you wait, by the time you start to take action, you may have missed the bus. Think of your end game. You’re may be caught in this situation where you can’t change lenders. You can’t afford what you have. But it’s your choice. Do you have to downsize your property? You may not want to, but you can’t afford everything. Even to the point where people might sell and have to rent and look at the cost of renting. These are the issues that are being discussed. Although now all we’re hearing is rents are going through the roof. People who own those properties are getting pinched as well. They’ve got debt against the property. They’ve got to get a yield. They’re not out there to be altruistic and look after other people’s welfare. No, they need to make a return.

Many options to take.

The point is there are many options that may be available to you. But you need to talk to someone now. Having that outsider look at what you are doing it will steer you in the right direction to help you make the right decision for your situation.