Debt Management
You need to have a plan to reduce your debts and, in many cases, reduce the tenure of loans through proper planning and understanding of your cash flows.
Debt consolidation
Debt consolidation involves the refinancing of expensive personal and credit card debt with a more cost-effective home mortgage facility. This strategy is suitable for clients who have equity in their home but are paying off a mortgage and also have other debts such as personal loans or credit cards. Read More
Debt recycling
Debt recycling is borrowing against the equity in the home for investment purposes and applying the net income from the investments (plus any cash surplus) to replace bad debt with good debt. This ‘recycles’ debt to assist in accelerating wealth creation. This strategy is appropriate for clients who have a home loan and want to accelerate… Continue reading Debt recycling Read More
Control Cash Flow
Better utilisation of surplus cash flow can help clients reduce the interest payable on their home loan. Interest on these loans is normally calculated on the daily loan balance and then added to the loan balance on a monthly basis. Clients can reduce their average daily loan balance (and consequently the interest charged) using one… Continue reading Control Cash Flow Read More
Understanding debt
No two debts are the same and because of this, there is no one surefire way to reduce your debts. One of the main problems people run into is having too many separate debts to manage. If you take out a car loan, have multiple credit cards or a mortgage, then managing your repayments can… Continue reading Understanding debt Read More