Whether it’s your mortgage, an investment loan or your credit card, make sure you have the right product to suit your lifestyle and your budget. Different products are made for different needs – but which one suits you best? It may seem like a small decision but it’s a very significant one.

In the world of finance, debts are either called ‘good’ or ‘bad’. A good debt is one where the interest is tax-deductible, e.g. if you have a loan on an investment property. Bad debts are things like home mortgages, personal loans or credit cards, where all repayments are made from after tax income.

Most people have at least one or two bad debts; the fewer you have the better. You should aim to pay these off as soon as possible, starting with the one with the highest interest rate.

One small thing you can do to minimise your interest payments is talk to an adviser about your choice of mortgage and other loans, as well as your repayments.

This could help you find a better loan product, or to consolidate your loans, or to set up an affordable repayment plan for you and your family. Maybe all of these things.

Your small decision

You may not be able to get out of debt quickly, but you can make your life more comfortable by better managing it.

If this sounds like something that might suit you or you’d like more information about it,
please complete our online enquiry form or call our Direct Solutions Team for assistance on 1300 669 445.

Note: Before your decision is made, you’ll receive documented advice from us, outlining our recommendations and reasons for your small – but wise - decision.

When times are tough we tend to rely on debt, especially credit cards, to tide us over. But if you don’t keep this under control, it can be a recipe for escalating debt - because interest charges pile up to increase your level of borrowings.

We all know the best way to use credit cards is to pay the entire balance before the end of the interest-free period, so we don’t incur any interest. But we live in the real world. It’s not always possible to find the money to do so.

But if you can pay even a little bit more than the minimum monthly payment you will make some headway against the outstanding balance, and this will save you interest.

Another worthwhile ‘interest buster’ is to use windfalls, like your tax refund, any extra money you get from a pay rise, some back pay or a bonus, to put a dent in your debt. You should always hit the high interest rate debt – like your credit or store card – first.

Your small decision

It may not seem a lot but interest busters can get you out of a lot of trouble if your debt looks like getting beyond you and assets have to be sold to pay it off.

If this sounds like something that might suit you or you’d like more information about it,
please complete our online enquiry form or call our Direct Solutions Team for assistance on 1300 669 445.