DEBT ELIMINATION

Take Control of Your Debt. Build Your Financial Freedom.

Debt can make it difficult to move forward financially, even when you are earning a good income. Our debt elimination strategy helps you understand your current position, prioritise your repayments and create a structured path towards becoming debt free.

A DIFFERENT APPROACH TO DEBT

It's Not Always About Earning More. It's About Changing the Way You Manage Your Money.

Many people find themselves either spending more than they earn or using almost all of their income to meet their expenses and repayments.

Simply earning more does not necessarily solve the problem. Without a clear plan and changes to spending and repayment habits, additional income can quickly disappear.

Debt elimination starts by understanding exactly what you owe, identifying where your repayments can have the greatest impact and consistently directing additional cash flow towards the right debt.

Know Your Numbers

List every personal debt and understand the balance and monthly repayment attached to each one.

Set Your Priority

Use a structured repayment approach to identify which debt should receive additional repayment funds first.

Stay Consistent

As each debt is cleared, redirect the freed-up repayment amount towards the next debt.

THE STRATEGY

A Simple System for Reducing Multiple Debts

Start by creating a complete picture of your personal debts. List each debt, its outstanding balance and its regular monthly repayment. From there, the repayment priority can be established and additional funds can be directed towards the selected debt.

List Your Debts

Debt

Balance

Monthly Repayment

Home Loan

$200,000

$2,000

Car Loan

$29,000

$636

Visa

$7,800

$200

Master Card

$4,500

$110

Furniture

$12,500

$600

Personal Loan

$14,000

$400

Illustrative example only. Individual circumstances and repayment strategies will vary.

Identify the Priority

Use a simple ratio based on the outstanding debt compared with its monthly repayment.
The debt with the lowest ratio becomes the initial repayment focus.

Debt Amount ÷ Monthly Repayment

=

Ratio

$12,500 ÷ $600

=

20.8

Redirect the Repayment

Once the first debt has been paid off, the amount previously allocated to that debt can be redirected towards the next priority debt. Over time, this can increase the amount being applied to each remaining debt.

Debt 1

Extra repayment added

Debt 1 paid off

Increase next debt repayment

Debt 2

Debt 2 paid off

Important: This information is general in nature and does not take into account your individual financial circumstances. Debt repayment strategies should be considered alongside your personal financial position and objectives. Speak with a qualified adviser before making significant financial decisions.

Create a Clearer Path Towards a Debt-Free Future

Debt elimination requires discipline, consistency and a practical plan. By understanding your debts, controlling unnecessary spending and systematically redirecting repayments, you can work towards a stronger financial position.

If you’re unsure where to start, our team can help you review your financial position and understand the strategies available to you.