Staying above water

Debt management goes hand-in-hand with effective cash flow management. After working with you to analyse your income, expenses and day-to-day cash flow, your financial planner can identify opportunities to generate surplus income, and advise whether you’re best to use those funds to boost your super or other investments, build up a cash reserve, or pay down debt.

Good debt, bad debt

Assuming you’ve decided to concentrate on reducing debt, the following questions might arise:

  • If you have multiple debts (e.g. credit card, car loan, store cards), should you consolidate them? If not, which should you prioritise and pay down first?
  • Can you accelerate your repayments within your current budget?
  • If you have a home loan and an investment property loan, which should you prioritise?
  • What is debt recycling? Is it appropriate for you?
  • If you have a redraw facility on your home loan, should you draw on it to reduce other debt?
  • If you have ‘good debt’ such as an investment property loan or margin loan, are you taking full advantage of the tax benefits?

If you’re serious about freeing yourself from a cycle of debt, or just need help in clearing the decks and getting your household finances and ongoing cash flow management on a firmer footing, a financial planner can help.

Your first meeting with a Fiducian financial planner is free and without any obligation on you whatsoever, should you decide not to proceed.

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