5 ways to beat mortgage stress

One of the top 10 dilemmas for Australians is finding a way to beat mortgage stress. One source says, “There is a fast-rising number of households falling deeper into debt, and it is set to get worse. [At one of the big banks], the value of loans which are now more than 90 days behind on repayments, jumped by 39% from a year ago.”

If you’re experiencing mortgage stress, it is not good news for your health and well-being. To help you, this article explores case studies of Australians who found successful ways to beat mortgage stress through working longer hours without burning out. Taking on extra work hours may not be optimal for some, but you may be fit enough, have the time and capability to work extra hours. The key is to put a cap on those hours and ensure you maintain good mental health and well-being at the same time.

Let’s take a look at the case study snapshots:

• Overtime
• Second job
• Change jobs
• Become a train driver
• Study.

After reading these, you may find one of these ideas works for you. You may also come up with ways of your own to beat mortgage stress and pay off that home loan.

For professional financial advice, it is important to speak to a qualified financial advisor. If you are in trouble with money, then seek free financial counselling for support with your money troubles.

Work overtime to beat mortgage stress

It may sound like a dichotomy, but for some people it is possible to work more to beat mortgage stress without adding to stress levels. If you have a full-time job, chances are you’re working around 37.5 to 40 hours a week. What if you’re fit enough and in a position where you could do more?

In one case study, a bus driver was rostered on 40-hour weeks but was experiencing mortgage stress. He volunteered to go on the roster for longer shifts each week. The bus company was set up for drivers who wanted to work several 11-hour days each week instead of 8-hour days. The driver changed to the longer shifts and increased his take-home salary by 33%. The key is to put a cap on the extra hours to avoid burn out.

Get a second job

If doing overtime is not an option where you currently work, you could consider doing what this security guard did. He was working full-time at a Melbourne shopping centre, but was struggling to pay his mortgage. He was also raising young children by himself at the same time. The eldest son was old enough to look after his siblings, so the security guard decided to work a few hours extra each week. He took a part-time job with a different security company patrolling business premises two evenings each week.

Because it was part-time evenings, his hourly pay rate was quite high. He now takes home enough to pay his mortgage and raise his kids. At the same time, he has put a cap on the number of extra hours he works. That way he doesn’t burn out and still gets time with his children.

There are smart options for doing a second job. You’ll find numerous listings on job boards for casual and part-time work. Start a job alert specifying casual work near you (to make it more achievable). Explore sectors which involve night work or weekends, such as cleaning, warehouse packing and sorting, and carer roles.

Change employers

Browse the job boards and see what other employers are paying for your role. You might find another organisation pays significantly higher for the same role you are in. In one case study, a full-time employee at a lower rating radio station was networking with key people at a more popular and higher rating radio station. Eventually he got a job there doing the same role for twice the salary.

Become a train driver

This is definitely a light-hearted idea to beat mortgage stress, but a seriously good one. Train drivers are paid healthy six figure salaries. This is due to the shift work involved, but if you’re in a position to be able to do that, then you know what to do.

In one case study, a digital website developer decided to hang up his computer after 40 years. He applied for a job as a trainee train driver at the age of 60. He got through to the first round, passed all the tests and is now earning 40% more driving trains than he was as a web developer. We have heard similar stories and salary ranges for train drivers in other states of Australia, the U.S. and the UK.

Study

Upskilling by doing a night course can open the door to a higher paying job. In one case study, the chef of a local Mexican restaurant also owns the restaurant. (The restaurant is open for dinner every night.) He cooks and his wife welcomes customers and takes orders. During covid when business was slow and they were just doing takeaways, he studied to become a registered nurse. This opened the door to him getting extra work and it’s a fall back in case the restaurant business doesn't survive.

Better Place Australia free financial counselling

If you are in financial difficulty, professional help is there. Better Place Australia financial counselling service is funded by the government to provide people with money issues, free support and mediation.

You can access free support and mediation from professionally qualified financial counsellors at Better Place Australia in Melbourne and across regional Victoria.

Watch the video case study snapshot. Financial Counselling Team Leader Christine shares how she supported and mediated for a woman who could no longer make her mortgage repayments because of the onset of health issues. The woman heard about the availability of free financial counselling through Better Place Australia and reached out for support.

Listen to the podcast for a more detailed account.