Managing your debt
Debt is not a dirty word! It can actually help you, if it's the right kind of debt.
Things to consider
On one hand, there is good debt where you borrow to invest and your investment grows in value or earns money. Good debt actually works for you. On the other hand there is bad debt where you borrow for a car, boat or use a credit card to buy items that depreciate in value and don't earn you any money. You lose twice here - the capital value and the interest you've paid.
That's why before you start accumulating assets, it's important to check what you owe - how much, in what form and at what interest rate. Then you can see whether you can arrange your debt more efficiently.
How we can help
We can:
- Review and analyse your current spending patterns.
- Review your financial commitments and debts.
- Identify your opportunities to save money.
- Construct a budget with you.
- Help you consolidate your debt effectively.
- Recommend savings or investment products to achieve your goals.
- Review, recommend and arrange appropriate insurance.
- Look at ways of turning bad debt into good debt.
What to do next
If you want us to help you review your financial situation contact us
today.
If you're not ready to talk to us yet but want more information
about how financial planning could help you, order AMP's free
educational CD rom, Thinking Ahead - your comprehensive guide
to financial advice. Thinking Ahead is a practical
guide to financial advice and how to make the most of your
money.
Also, you might like to read the AMP.NATSEM Income and Wealth Report - Household debt in Australia - walking the tightrope. This report investigates our relationship with debt and the profile of debt consumption in Australia with particular focus on:
- household savings
- household debt
- housing loans
- use of credit cards
- personal loans, and
- HECS debts.
Advice and information on this page is intended as a guide for you to consider when thinking about your financial situation. It does not take account of your personal circumstances. Therefore, consider it together with your overall circumstances before making a decision about your financial future. Alternatively, come in and speak with us about how we can help.
