We all know that there’s good debt and there’s bad debt. But what are you doing to get rid of bad debt and make the good debt work for you?
Bad debt needs to be eradicated from your life. Pay it off, get rid of it. If you can’t afford to live on your paycheque and rely on credit cards to get you through the end of the month, stop spending. If you can’t pay off your credit card every month, stop using it and keep paying it off until it has a zero balance. It might take a few months, but it will happen if you’re diligent. If you’re in over your head, talk to me because we may be able to consolidate your debt.
If you’ve got good debt – like a home loan or investment loan at a competitive rate, make sure it’s working for you. Make sure you’re monitoring your interest rate and getting a good deal – if not, talk to me and we can look at your options to re-finance.
If the value of your home has increased and you’ve paid off a chunk of your loan, you’ve got some equity built up. Let’s see if we can use it to get you into an investment property.
Debt needs to be actively managed. Don’t just put your head in the sand and hope it goes away.
If you want to look at your financial position and options, give me a call or email me. I’m always happy to see what we can come up with!