Our Current Recommended Survival Strategy

1. Identify all high cost short term debt and consolidate into your mortgage account up to 90% loan to current value.

2. Obtain a financial efficient mortgage (FEM) (Bank account and mortgage account is the same with zero bank fees - including zero fixing fees)

3. Run all income through the mortgage account to save interest until you spend the money.

4. If your saving plan does not return a greater net percentage (after tax and fees) than the cost of the mortgage put your savings into your mortgage.

5. Use short term fixed rates to get rate advantage but mix them and identify the right amounts to fix for each period. (have a mortgage analysis undertaken)

6. Keep your eye on the fixed rate movements this will give you an idea on how the banks expect the rates to perform over the next 5 years.

7. Do not be tempted to hit the credit cards and buy on HP, with tough times the retail offers can be hard to resist.

In a recessive market what you owe is far more important than what you own.