Frequently Asked Questions
- How does debt consolidation work?
- How can I lower my credit card debt?
- What are some ways to reduce or eliminate debt?
- How can I manage my debt and save money?
- How can debt management help me get out of debt?
- What is the difference between a secured and unsecured loan?
Debt management is a strategy to assist you in managing your debts correctly. The debt management process involves:
Accumulating wealth requires a strong commitment and perseverance. The following aspects have to be considered in the process of creating wealth:
- Prioritising debts more effectively
- Consolidation of debts
- Restructuring loans
- Reviewing ‘deductible debt’ and ‘non-deductible debt’
- Cash flow and
- Addressing risk provisions
Debt management services are a critical part of any financial planning advice. We help you implement a tailored and suitable strategy in line with personal goals and objectives.
“If you’re willing to pay 18% on a credit card, you will not come out well.”
Self-employed Todd was making good money but struggling with cash flow and debt management.
With loans for his work van and equipment, a home loan and debt from using credit cards when cash flow was tight, Todd came to us for financial advice.
Our financial consultant recommended consolidating his debts by refinancing his home mortgage, which has the lowest interest rate.
“This helps me pay my debt down faster because I’m not paying as much interest,” Todd says.
Being a tradie, we knew Todd was potentially exposed to accidents, making personal protection policies important. We also asked him what would happen if he couldn’t work.
Our financial adviser helped Todd with income protection – an important safeguard to ensure he could cover his mortgage repayments if he wasn’t able to work.
Twelve months later, Todd returned for further investment advice.
With his debts under control, we started Todd on a path towards wealth creation with a savings plan. “It’s a great feeling to know I’m not only covered if I can’t work. I’ve also got money available for emergencies or unexpected events,” Todd says.