Getting Control of your Debt
Examples of good debt are things that advance your financial position, like a loan to upskill or retrain, or borrowing to buy property or equipment you need to earn money – a laptop, or a car to get to work. Good debt nearly always comes with easier terms and lower interest rates.
Bad debt is often called consumer debt. Using your credit card to go on holiday, a store card to buy Christmas gifts, or hire purchase to get a new TV, are all examples of bad debt. With very high interest rates, you end up paying much more for these items, and they don’t help you earn money.
Deal with that debt.
Good debt is used to fund assets that increase in value. Bad debt buys things that decline in value. Sort out what’s what, and focus on minimising that bad debt as quickly as possible.
Be mortgage-free faster.
Being mortgage free is highly correlated to quality of life in retirement – no surprise, given you don’t have a mortgage payment or rent to worry about! Get there quicker with a clear mortgage repayment strategy.
Use leverage appropriately.
Good debt is a useful tool, particularly in todays low-interest environment. Make sure you’re getting best value from your good debt, and that you’re not running too much risk. Whether it’s your home mortgage, property investment, business funding, or even a student loan – leverage wisely with a clear strategy.
We carry brokerage agreements with most NZ lenders. You’ll have help identifying and dealing to bad debt, so you pay it off faster. We’ll also help you manage your good debt, and make smart decisions about taking on more.
Protecting You and Your Family
Insuring you and your loved ones from financial harm in the event of unforeseen events.
Using debt effectively – whether it’s to get into your first home, scale your business more quickly, or build a property empire – is a key part of building wealth. Book a free consult now and we’ll show you how.