Debt Management

---

It includes 2 basic types: 

• Inefficient debt
• Efficient debt

Inefficient debt: is about things you pay that don't generate any new income, such as buying goods, services and assets. You will need to rely on your income sources to repay the debt. Also, the interest cost on this type of debt is not tax deductible.

Example: loans, credit cards and personal loans.

Efficient debt:  is about assets you pay that have the potential to grow in value and generate an income. They can benefit you in two ways: 

• The income from the asset can be used to help repay the loan
• The interest cost may be tax deductible, helping to minimise any tax

Example: investment property loans, investment loans and business loans. 

Why do I need Debt Management?

Debts are stressful when they become multiple. You can easily become overwhelmed by thoughts of how you’re going to pay off your debts. The interest rates on those debts are that they don't stop stacking up. 

By having a good debt management plan, you can have:

• Help to pay debt sooner in an affordable way
• Up your income to meet everyday expenses
• Keep money for things that matter
• Bring happiness to you and your family
• Stop the stress feeling and relax!

Benefit for working with us

Our advisers can help you with Debt Management advice, including making sure you meet its save purpose, the investments & insurance strategies, and other aspects of Debt Management planning.