The next few months might be an ideal time to clear debt and take stock of your finances, as interest rates continue at historic lows.
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The Reserve Bank of Australia has held the cash rate target at 0.25 per cent for September as Australia officially enters a recession.
The rate has been at 0.25 per cent since mid-March in response to the harsh economic conditions of the coronavirus pandemic.
Wagga financial advisor Andrew Bowcher said there were "winners and losers" when it came to the low cash rates.
While those looking to borrow money would find current interest rates attractive, those currently living on savings and investments would find it more difficult to get the most from their money.
"At the moment anyone who is a saver or self-funded retiree will find they'll have an impact," Mr Bowcher said.
He said anyone concerned about their investments should seek professional advice, and those with short term saving goals should be looking at investing their funds somewhere without too much volatility that can be accessed quickly.
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Mr Bowcher said people looking to take advantage of the low interest rates to make big purchases like homes needed to weigh up the positives and negatives with respect to their financial situation.
"Do you need to buy a home, have you found the right home? What's your financial position like, what's your job position like?" he said.
"Can you service a mortgage not just at these rates but can you service a mortgage at a higher rate? Because ultimately interest rates will go up because they are at quite historic lows."
Mr Bowcher said there was a lot of uncertainty around how long these rates would last, and uncertainty in many industries that could impact livelihoods down the track.
With that in mind, he said it was the perfect time to look at using funds that might normally be saved for travel or going out to increase repayments on any debts.
"It's now a really good position to see what your debt position is and actually review it and be mindful of the impact of what COVID has had or may have in the foreseeable future," he said.
Reducing debt while interest rates are low can avoid the burden of higher rates down the track.
"If interest rates ultimately go up, you'd like to think that you're paying down the debt."
