If you’ve been following us on social media, you may have seen our daily tips on conquering your debts as fast as possible. After all, the longer we owe money, the more it costs us in the long term.
Expanding on our daily tips, here is part one of everything you need to know about consolidating your debts and getting out of debt sooner.
- Collect full details
The most important first step is to have a clear understanding of everything you owe, who you owe it to and all the finer details. For starters, look for the following: debt type, outstanding balance, interest rate, repayment amount, repayment frequency, final payment date, any associated fee, and what early repayment or termination fees may apply. Having all this information available with you will give you a good understanding of your current position and plan next steps well.
- Meet the experts
Consolidating debts is a tricky business, with many key details that shouldn’t be overlooked. Having an expert in your corner is the best way to ensure you’ve got all your bases covered. Join us for a friendly meeting to discuss your current financial position, current budget, any lifestyle changes that may be necessary and plan the road map for you.
- Discuss options
Meeting with your financial adviser gives you the opportunity to see all the options that may be available, and which ones will work for you e.g. balance transfer of your debt on a 0% credit card scheme, seek family help, balance transfer on low interest rate loans, home equity top-up etc. Sometimes what appears to be the best way forward can actually become more harmful in the long run, so we can advise you on the right steps to take for your situation.
- Is Home Equity an option?
Sometimes, rather than paying back the owed amount directly, we may advise you to instead use your existing assets. This could mean topping up an existing home loan, refinancing and/or restructuring your home loan to save extra money or any number of solutions. Our mortgage advice services are generally free of charge, so don’t be afraid to ask how you can make your home work for you.
- Work out the plan
Whichever way we go, your financial adviser can lock in a solid, detailed plan that shows you the next steps you need to take, gives a target pay-off date and prioritises which debts to pay off first. With this framework in place, you can say goodbye to your stresses and hello to being debt-free faster.
Stay tuned to discover the rest of our top tips (Tip # 6 -10) in our next blog and take control of your budget to start paying back those debts and secure your financial freedom.
In the meantime, feel free to give us a call to talk about your future. Our expert team is here to help you manage your debts and boost your savings. We can’t wait to hear from you.
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