INTEREST RATES RAMPAGE

Do you think an ex-Reserve Bank insider who’s the chief economist for a leading international bank might possibly know a thing or two about monetary policy that the average person doesn’t?

According to the following article penned in September 2010 , we’re in for five consecutive 25 basis point rate rises.

Here’s a snippet …

Homeowners are in for a rough ride with the Reserve Bank tipped to indulge in what can only be described as an interest rates rampage.

An RBA insider has revealed that the central bank are “gearing up” for five interest rate rises, bringing the official cash rate up by 125 basis points to 5.75 per cent by the end of next year, claims news.com.au.

Paul Bloxham – who was with the Reserve Bank for twelve-years before joining HSBC as their new chief economist – claims Australia’s robust economy will result in a string of rate hikes – including a rise by 25 basis points before Christmas”.

And here’s the URL to the entire artcile … http://au.finance.yahoo.com/news/Economist-claims-five-yahoo7finance-985879925.html

Did it come true? Maybe not! Today the Fed left the cash rate alone but who knows next month and so on?

The point is that rates can and do rise and there ain’t nothing your average Joe can do about it!

Think of it this way; for very $100,000 your client owes the bank, within about a year and half, they could be paying $1,250 more per annum  for the privilege so if they had say a $350,000 mortgage, that equates to $4,375 more and on and on we could go with other examples. I guess the thing is then, where the heck is the extra dosh going to come from to meet this when it seems that  nearly everything else is getting more expensive. I mean have you noticed the price of food again lately?

Ok; the point of putting up this info here is that we can legally show you how to not just negate this effect for your clients but to turn it around by probably at least double that so as to continually be running their home mortgages for less than any other way known possible (oh and possibly forever that is).

What on this earth are you waiting for? Let us educate you to to do the same for your clients in that whilst you or they can’t control everything in life (and obviously that includes interest rates), steps exist however, to mitigate external forces and to thrive in these tumultous times. Our flagship product, “Set Up For Life” could well be the perfect elixr for the upset tummy that’s over the horizon called “rate rises”!

Make It Good Debt!