Finance companies have made their money for decades through Compound interest. Compound interest is the calculation of interest that daily accumulates into thousands of dollars paid by the consumer.

FACT: I used an interest calculator to work out how much interest my best friend Brad would be paying if he continued paying the normal repayments on his $280,000 home loan over 30 years.

It worked out that he would be paying $412,000 only in interest over the next 30 years. If he were to put his home buyers grant into his loan, it would pay for 7 years. Over $150,000 in compound interest would be save just from the $12,000.

By putting a small amount of money extra into your loan, for example ten dollars, it would save much of the hassle of struggling for the earnings you need to survive. These types of methods could save you the money you deserve. If you have already installed a payment larger than you can afford, refinance with a company that offers an easier payment.