Being in debt can hinder your ability to stabilise your finances. There are various kinds of debt, from mortgages to bank loans. Even credit cards count. According to some analysts, everyone ends up in some form of debt at some point in their lifetime.
Defaulting on all of them is an option, but that’s drastic and a poor choice. It is always better to find ways to pay off your debts. If you are having difficulty doing this, call us. We can help you by having a financial planner talk with you about debt management.
Debt management is how you live day by day, operating under a strict budget. Ultimately, what the debt is becoming less important than the ability to pay it off. Debt management is meant to help you do exactly that, but at a reasonable pace that allows you to maintain a good standard of living.
With the help of a certified financial planner in Australia, we can assist you in controlling your debt. We can help plan your finances so you can pay off what you owe without compromising your life.
A debt management strategy is best applied to an unsecured debt. These are personal loans and credit cards, but there are other types.
If you owe too much to too many people, debt management can become a necessity. Failure to meet with the regular payments is a bad reflection on your credit history. If your history is poor, the odds of you getting a new loan drop dramatically.
A poor history begins a chain reaction that affects not only your present finances but also the future. Your retirement income and financial independence are at risk.
We can assist in setting priorities for debt management. You have your necessities, such as rent or food. You have the debt itself, which must be paid. Finally, there is everything else, from luxuries to the occasional impulse treat if you have money to spare.
A financial planner can take stock of your situation and help you understand what can be kept and what needs to go. From there, we can restructure your budget, so it covers the first priorities.