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Debt Management

It is nearly impossible for us to live debt-free, however, too many Australians don't pay enough attention to debt mangement. 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.

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Money tip #2 – debt management

20 December 2011 - Debt isn’t a dirty word, so long as you carefully manage it. When seeking a credit card or home loan,... read more >

Help! I have three overdue credit card bills

11 July 2011 - I have had a terrible period lately – both work-wise and emotionally – and have run up a big credit card... read more >

Common debt difficulties

11 April 2011 - In line with Australian’s consumer cautiousness over the past months, it seems many Aussies are finding it a... read more >

Dealing with a financial hangover

31 January 2011 - After the Christmas and New Year break my credit card has taken a pounding. What can I do to reduce this debt as... read more >

How to choose the right credit card for you

26 October 2010 - I am really worried that my kids, who are now young adults with credit cards, could find themselves in a credit card... read more >

Good debt and bad debt

31 March 2010 - I heard someone talking about good debt and bad debt and I didn’t really understand what he was talking about... read more >

Is bankruptcy the easiest way out?

09 March 2010 - I have found my personal circumstances pretty hard after an accident on a weekend away from work meant I... read more >

Credit ratings explained

15 February 2010 - A credit rating is used to assess the risk involved in lending to an individual, business or company. On an... read more >

Bankruptcy – your questions answered

15 February 2010 - Bankruptcy is a tricky – and often testing – subject. Below, Peter Switzer answers a common question on... read more >

Credit cards – how to keep in control

15 February 2010 - Credit cards are a threat to long-term wealth, and in this article, I’ll give you a present by providing a... read more >

Other articles

What’s in the package?

09 February 2012 - Want to know about a really smart money play where you can save a load of tax and wind up with some nice goodies?... read more >

Money tip #5 – tax management

23 December 2011 - For the average individual, the tax system can be a confusing maze of different obligations and rules. Here are five... read more >

Money tip #4 – trusts

22 December 2011 - A trust can be a great way to keep tax on assets at a minimum while sharing the income among family members. A trust... read more >

Money tip #3 – salary packaging

21 December 2011 - If you’re looking to add extra cash to your bottom line, salary packaging might be the way to go. This... read more >

Money tip #1: Budget planning

19 December 2011 - If you want to put your best foot forward when it comes to your financial affairs, the first thing to do is get your... read more >

Carbon tax and Gillard: I can’t get past the lie!

14 November 2011 - “We have made history!” said the Prime Minister, when her Government got the carbon tax legislation... read more >

Tax reform is taxing

07 October 2011 - Is it just me, or are there other Australians out there asking why we are stocking up Canberra this week with a whole... read more >

Why it’s time for voodoo economics

04 October 2011 - This week Rob Oakeshott’s baby – the tax summit – will attract the usual suspects who will be... read more >

Last-minute tax tips

26 August 2011 - The penny dropped over the weekend that I have earned a lot more income this year via part-time work — I am a... read more >

Explaining the small business CGT-exempt contribution

05 August 2011 - I have a small business and will be selling it over the next few years. My accountant talked about a Small Business... read more >

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