Debt is only a concern if it is not managed properly

Debt is often a necessary part of achieving our objectives. Many of us have spent much of our adult lives in some form of debt, whether it’s from home loans, business loans, personal loans, or credit cards. Having a debt management strategy entails more than just “getting rid of it quickly”.

When we borrow, we use assets as security. Many people are unaware that your loan security is not fixed. We take on unnecessary risk by providing more security than is required and failing to restructure.

Your Debt Plan ensures that: 

1. the best interest rates and terms on the loan have been negotiated,
2. a clear action plan to pay off the debt has been determined, and
3. the assets exposed to borrowing are limited and only sufficient to support the borrowing as security.

Matt Schlyder unpacks the most efficient way to structure your debt and discusses exactly what a Debt Plan should look like in the video below.