Debt management

It is nearly impossible for us to live debt-free, however, too many Australians let their debt levels spiral out of control. Ideally your total monthly long-term debt payments, including the mortgage and credit cards, should not equate to more than a third of your gross monthly income.

Paying off your debts is actually one of the very best investment decisions you can make. Many people would like to become debt free as soon as possible. We can help you calculate exactly when you'll be debt free and help bring this date closer. You may be able to get out of bad debt much quicker through a smarter use of your income.

A good debt is where the borrowing is tax deductible, such as borrowing money for an investment purposes. Bad debts are those debts, apart from your home mortgage, that are not tax deductible.

Debt for items that you don't need and can't afford should be avoided. The worst form of debt is credit card debt as it typically carries the highest interest rates.

Consolidating your debts can help too but this may not be necessary. At Switzer we will assist you in understanding what the best options for you may be.

Click here to book a complimentary first appointment with a senior Switzer financial planner.