Do you never seem to have a cent left over to save, let alone invest, living instead from pay day to pay day? Worse, are you actually spending more than you earn – relying on credit to get you through?
Debt can be a positive in our life and not a problem if you know how much you owe and can pay it off. But when you can no longer service your loans or meet the payments on your credit cards then your debt may be out of control.
There are three key steps.
Step 1 - Get it down in writing
Don’t ignore the problem. Instead, sit down and take stock of your financial situation.
Add up your total debt – all loans and all amounts outstanding on your credit and store cards.
It can be hard to know where all your income goes, so for one week write down all your expenditure. You may be surprised or even shocked how much buying lunch and coffee adds
up to in a week.
Next, work out how much you pay over a year on all your bills, such as electricity, mortgage payments or rent, rates and all insurance policies.
Add the totals together then match your costs with how often you are paid. So, if you are paid weekly divide the year’s total by 52, if monthly divide by 12, or, fortnightly, divide by 26.
All Round Financial Planing has a debt calculator available to make this process easier. Please call our office on 6583 9748 to get your free copy.
If you spend more than you earn, and continue to do so, you will fall even further into debt.
Step 2 - Take control
Talk to a professional financial planner. Carol Round, our Certified Financial Planner® can help review your finances and work with you to ensure your goals are realistic so that you set a realistic budget and stick to it. We will look at ways to either increase your income or reduce your spending to reduce personal debt. This can include debt consolidation, refinancing debt, payment plans or debt agreements with creditors.
Step 3 - Regular reviews and moving forward
Once we have developed a personalised Money Management program that suits your current and future needs, you will need to continue to review this. We offer this as part of our ongoing service agreement to ensure you stay on track and over time turn debt from a negative into a positive.
All Round Financial Services helps you define then transform your goals into a secure reality that allows you to realise your ambitions. Contact us.