Debt Management

Managing your debt

Wealth Creation

Debt is not a dirty word! It can actually help you – if it’s the right kind of debt.

Things to consider

On one hand, there is good debt where you borrow to invest and your investment grows in value and earns money. Good debt actually works for you. On the other hand there is bad debt where you borrow for your home, car, boat or use a credit card to buy items that don’t earn you any money and often depreciate in value. 

You lose twice here – the capital value and the interest you’ve paid. Debt on your home is also known as bad debt as you are unable to claim a tax deduction on the interest due to not receiving an income from your asset although it may appreciate in value.

That’s why before you start accumulating assets, it’s important to check what you owe – how much, in what form and at what interest rate. Then you can see whether you can arrange your debt more efficiently. At Bailey Financial Services, we can help assess your financial situation and tailor a debt management plan to suit you.

How we can help

We can:

  • Review and analyse your current spending patterns.
  • Review your financial commitments and debts.
  • Identify your opportunities to save money.
  • Construct a budget with you.
  • Help you consolidate your debt effectively.
  • Recommend savings or investment products to achieve your goals.
  • Review, recommend and arrange appropriate insurance.
  • Look at ways of turning bad debt into good debt.