When it comes to debt management, the most important thing is to get started. The longer you leave debt ‘unattended’, the bigger it grows.
The second thing to consider is the most effective way to reduce your debt. There are many types of debt in our financial system such as:
car loans; and
Not all debt is ‘bad debt’. For example, it may be prudent to hold on to an investment loan if that capital is generating a profit elsewhere (such as in a managed fund or investment property). However, for bad debt such as high interest credit cards and personal loans, it is better to get started on paying them off. Once you have got back to a neutral position, you can then start moving forward and focusing on wealth creation.
A Fiducian Financial Planner can discuss your debt position and assess the most effective way to improve your circumstances.
Schedule a consultation with our Debt Reduction expert.