Debt Management
Managing debt as a positive financial strategy
Debt is often perceived as a negative. It is viewed as the weight around the shoulders of mortgagees, unserviceable for recent university graduates, or unmanageable for those without the means to service their debt of any kind. If not managed correctly, debt can quickly become the negative burden it so often envisaged. Yet debt can also, surprisingly, be a mechanism to build wealth.Â
Through consolidation strategies and payment tactics debt can be controlled, managed and serviceable within your means. Some mechanisms that can help manage debt include debt consolidation, boosting your mortgage offset account with available cash, using surplus income to increase loan repayments and increasing repayment frequency.
Debt as the wealth accelerator
Like the other components of a holistic financial wellness plan, debt can be used as a tactic and long-term strategy to build wealth quickly.
Using debt to fund increases in your investment portfolio size will have a substantial impact on your financial wellbeing over time. It ensures you can reach your target net value faster than you may have without borrowing funds, and you are therefore able to enjoy the benefits of that process much sooner.Â
The key to success is the selection of appropriate investment strategies and investments, to ensure that not only is the debt serviceable, but that it matches your risk profile and appetite, and reaches investment goals sooner.
Tribel’s Debt Management Plan
At Tribel, we believe that debt is an opportunity to achieve a desired lifestyle quicker, whilst also reaching investment goals sooner. Like all other elements of financial wellbeing, such as cashflow management or retirement readiness, debt management is a strategy by which to achieve financial goals and wellness.
Every individual’s situation is different. Our financial planners work with our clients in a one-on-one capacity to objectively evaluate their individual debt profiles, reviewing potential risk scenarios and recommending strategies and tactics that can help minimise effort, stress and the overall servicing of your debts.
We work closely with our clients across two plans that can help drive financial wellness through debt:Â the Debt Reduction Plan and the Wealth Accelerator Plan.
Want more information? Download our brochure on Debt Management or get in touch with us to discuss.