“Good” debt is when you borrow to invest to purchase wealth-building assets – meaning assets that are likely to increase in value over time and/or give you an income. Good debt may also be tax deductible. An example of good debt is borrowing to purchase shares or an investment property.
How we can help
Knowing how to manage your debt can help you take control of your financial future and manage your cashflow.
We can recommend a debt management plan to help you pay down your bad debt whilst using good debt to build long term wealth.
“Bad” debt is a loan used to purchase non-income producing assets and where the interest on the loan is not tax deductible.
Using a credit card or a personal loan to fund a holiday or to buy luxury items are examples of taking on bad debt.
Our Advice Process
During our first meeting you can expect to discuss your financial goals and objectives so we can better understand how we can help. We’ll then do a financial health check by going through a series of questions so we can get a picture where you are today. This is also a chance for you to ask us questions about how we can help.
Once we’ve identified your goals, the next step in the process is for us to build a deeper understanding of your personal and financial situation. This information, along with our discussion about your goals and objectives, allows us to begin creating a tailored plan for you.
After finalising your tailored plan, we’ll present you with a Statement of Advice, explaining our recommendations and ensuring it meets your goals and objectives.
The strategies recommended in your Statement of Advice will now be implemented by us. This may also involve us working with our industry partners such as accountants, solicitors and mortgage brokers.
It is likely that your financial circumstances, goals and objectives will continue to evolve over time. That is why it’s important for us to contact you periodically to review your situation and update the strategies in place.
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