Mortgage and Other Debt Reduction
It is the great Australian Dream to own your Home, ideally before you retire. But will it just remain a dream? With rocketing property prices and costs of living, fewer Australians can now afford to buy their “dream” home. Even when that happens, most of the time they are burdened with a hefty mortgage which is usually not paid off until at a very late stage in retirement or even beyond.
Debt is part of modern life. It can be used to help you reach your goals, but only when you are in control of it, not when it is in control of you. It’s easy to build up little bits of debt here and there that don’t appear to amount to much, but can quickly eat into your cash flow.
Some questions you may wish to consider are:
- Where does all my money go?
- How can I manage my money better?
- How can I take control of my debt?
- How can I pay off my home loan sooner?
- How can I be smarter with my credit card?
- How can I consolidate my debts?
- How do I make the most of my savings?
- What is the benefit of starting now?
It can be challenging when it comes to understanding where your money goes and how best to manage it.
How can your Adviser help?
- Review your spending patterns, financial commitments and debts.
- Help you set specific goals and target timeframes to achieve them.
- Identify your opportunities to save money.
- Help identify ways to pay off your home loan sooner.
- Review, recommend and organise appropriate insurance to protect your existing assets and your financial situation.
The Accelerated Debt Reduction Program (ADRP) might sound a very impressive and daunting terminology but all that it is meant to do is reduce the capital component of your non-deductible debt as quickly as possible and the sooner you do that, the quicker your mortgage will be paid off!!
And where do you get the extra money to reduce your mortgage faster? Your adviser will work with you to ensure you have an effective cash flow management system and that you are not “overspending”. But most importantly, if you have sufficient equity in your property, you adviser will show you how a Debt Recycling Strategy will release extra funds which can be diverted towards your mortgage.