Lottery winners use winnings to pay mortgage debt — study

By Gerv Tacadena

How did lottery winners use their prizes? Some bought a house, while other paid off their mortgages.

A record-breaking $150m Powerball jackpot will be drawn this week — how would Australians likely use the money?

As it turned out, many past lottery winners used their winnings to pay mortgage debts and buy a house, according to a study by The Lott.

The study said 54% of winners paid off their mortgage while 20% bought a new house.

"Each year, we crown about 400 division one winners across out lottery games. Many of these only discover their good fortune after we make contact with them and break that life-changing news they've won the big one," The Lott spokesperson Ally Ramsamy said. Also read: How to bank on a big lottery win

The study surveyed over 100 Australian lottery division one winners and asked them what they did with their prizes. Aside from paying off mortgages and buying a house, some also invested money for their future, bought a new car, donated to a charity, and enjoyed a holiday. There are a few who said they retired from work after winning.

"Who is better-placed to give you some tips on how to be a newly minted millionaire than some of our previous lottery winners? Some winners advise you to put their prize in a term deposit while you make plans, while others encourage you to seize the day and make some of those long-held dreams a reality," Ramsamy said.

In the 12 months to 30 June 2019, 10 Powerball division one winners across Australia took home more than $398.5m in prize money.

Over the same period, more than 131.8 million winners took home more than $3.3bn in prize money from their favourite games at The Lott, including TattsLotto, Monday and Wednesday Lotto, Powerball, Oz Lotto, Set for Life, Lucky Lotteries, Keno, Super 66, Lotto Strike and Instant Scratch-Its.

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