Chris Foster-Ramsay – The New DailyPrincipal Finance Broker at Foster Ramsay Finance
Interest rate rises lead to second job surge.
…But there are also some warnings about second jobs. Finance broker Chris Foster-Ramsay said burnout was the most obvious.
“Where lenders will have concern is around the second job in addition to a full-time role because of the chance of burnout and everything collapsing is much higher,” he said.
Extra income is a great way to save. However, borrowers who want to use it as leverage for a loan need to show lenders proof they have been in the role for six months or more, said Foster-Ramsay.
“With a secondary income, they want to see that it’s not just a short spurt, they want to see that it’s sustainable if they are going to take it into consideration for working out borrowing capacity,” he said.
Interest rates are at a nine-year high of 2.85 per cent and the Reserve Bank of Australia has flagged further raises in 2023.
Australians will be looking for innovative ways to save. Foster-Ramsay advises starting with a budget review.
“The first thing to go will be the discretionary items like dining out, coffee, holidays and more often than not, cuts to multiple TV subscriptions,” he said.
“The other way to look at raising a bit of cash is selling stuff. Things that have been accumulated over time that can be sold at local marketplaces or online can always raise cash.”