manage my debt
It’s fairly easy to borrow money these days which means it’s even easier to get into debt. Because of how easy it is to get a mortgage, personal loans and finance options, you might find you have multiple debts, with a range of interest rates. Sometimes having so many different debts is not always the best structure for you. If you are having trouble reducing your level of debt - Don't give up!
Here are some of our tips:
Make a list of all your debts
The first step here is to know what you’re really dealing with, because without having an idea about the size of the debt, or how many debts you have, it's difficult to work out an appropriate plan of attack. So make a list of all of the debts you and your partner have, and also look at your overall financial position, this will help keep things in perspective.
Now that you have a better idea of your overall financial position, you can start looking at options that will help you pay off some of your debt.
- Prioritise the debt with the highest interest rate first; or
- pay off the smallest debt first - that way you’ll feel a sense of achievement
- Consolidate the loans
If you are struggling to manage your debts, it may sound like a good idea to pay someone to fix your credit problems or roll all your loans into one loan.
Consolidating or refinancing loans can work for some people if it means they pay less in fees and interest. For others, it may only be a short-term fix, especially if they can't meet the repayments on the new loan.
Seek help if you are aren’t sure
If your debts are getting out of control or you are really struggling to make ends meet, it's important to act quickly.
When it comes to getting on top of debt, the most important thing is to get started. Assess your situation and consider the options that will work best for you. If you are struggling with debt, act quickly and seek help.
Explore these Altus services which are best aligned with your goal
Financial planning is the first step to building wealth and giving you the financial freedom you desire. Your personalised plan takes into account your current situation, where you want to be in the future, and how best to get there by managing the flow of your finances to achieve the future you’ve always pictured.
There are many elements that are taken into account to achieve your financial plan: your attitude towards risk, your time horizon, investment choice, cashflow and borrowing capacity.
We can assist in structuring your funding requirements so that they are consistent with your financial plan and optimised for your taxation situation. This can include strategies such as debt recycling to keep you on track over time and keep your borrowings efficient. We factor in affordability and cash flow, and also advise on the best financial structure for your financial situation.
When designing your financial plan its always necessary to ensure that your cash flow is appropriate for your ongoing requirements. It's all part of the mix. Investment, debt, investment returns, your free cash flow and taxation situation need to work in harmony to produce your optimal result.
The way we work is to start with a blank canvas, and help you realise your masterpiece. We will create a strategy that’s right for your situation, so you can achieve the financial goals you’ve pictured.
Once you have your financial plan, your adviser will periodically “check in” with you and review your progress towards your goals. This is particularly important as it keeps your financial plan on track, updated and tailored to you.
Major changes or lifestyle change?
Whether it’s a change in your personal life, such as having a child, economic environment changes, or you have changed Lifestage, we are always evaluating our advice, to ensure it suits your new situation.
Your Ongoing Service Program is designed to be relevant to the goals you are trying to achieve, the stage of life you are at and the complexity of your personal situation. This means if there are any major changes in your lifestyle this will impact your current advice and plan, and therefore, your level of ongoing service, sometimes a new plan is needed.
Back on track
When we review your progress, we will help you make informed decisions about whether any changes to your plan are required.