Debt management
Debt – it’s a scary word for some, right up there with ‘budget’. Statistics tell us that Australia’s total household debt now stands at $1,089 billion – about $52,000 for every man, woman and child*.
Budgeting can be a simple and effective tool for working out where your money goes, and how you can find areas to save – giving you financial freedom to achieve your goals, whether it be investing, saving for a house or treating yourself to a holiday. Finding a little extra in the budget to pay off debt can also be rewarding.
For every $110 we earn, we owe $160# and with the cost of living rising over the past year, fluctuating investment markets and reduced consumer confidence, more and more are Australians feeling ‘mortgage stress’, so a little financial re-arrangement could make a world of difference.
While the figures are worrying, getting into debt isn’t always necessarily a bad thing, provided it is part of a longer term strategic plan. Whether it’s borrowing against the equity in your home to purchase investments such as managed funds, consolidating your debts into one loan, or recycling your tax savings by making extra repayments on your mortgage, a Genesys wealth adviser can show you how to improve your financial position by managing your debt from bad to good.
* www.rba.gov.au
# www.ifsa.com.au