Today it’s unusual if you don’t have some form of debt. Home loans, business loans, personal loans, credit cards, store cards. Debt in its various forms brought the world to its knees during the Global Financial Crisis. Which is why having a clear, achievable Debt Plan is such an important step towards being Financially Well Organised.
Key elements that should be addressed in your Debt Plan include your choice of loan; a clear repayment plan and lastly the level of exposure your assets are subjected to against the borrowing. Questions you should be asking yourself include what type of loan you should be taking out, the term of the loan and what sort of repayments to make.
If you have more than one loan, you should be considering which loan is more advantageous to keep, which one should be paid off first and what collateral is being held against these loans.
You’ll find more useful hints and tips on how to manage your debt in FWO’s Debt Plan paper. Or if you want more personalised advice to maximise your tax advantage, FWO is more than qualified to do that. Contact us.