Unfortunately sometimes debt is also unavoidable, but that does not mean you should slack on savings and investment. Many students start in debt and as such it is their most pressing financial concern and actually places students at a disposition when entering the market. But don’t despair, there is a way out, financial planners can assist you with a sound financial debt reduction plan while also putting in place a wealth creation plan.
Another reason for unavoidable debt in itself could have been avoided where an unforeseen illness or accident and loss of income could have been prevented or greatly reduced with a sound risk plan. Sadly, Financial Planners often have to put in place a debt reduction plan first before they can create your wealth creation plan.
There are a few points to consider before making unnecessary debt choices as this will affect your budget and your future financial position. Perhaps saving towards a deposit or saving to accumulate the full amount will place you in a better position.
Debt reduction takes as much discipline as savings. So before entering higher purchase agreements, consider the true cost in line with your budget, decide if it is better to buy it now or save and buy it later. Another fatal decision is not paying debt; it could cost you your credit rating and will affect your future loan situation when a home loan or car loan becomes unattainable.
Unnecessary debt accumulated now, can poison your financial wealth position in the future. Plan, budget and protect .Loss of income is the antidote for debt poisoning.
Edited by Natasja du Preez (Internet Marketing Solutions)
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The views and opinions expressed in this article are those of the author and do not necessarily reflect the views and opinions of Ben Charlton. The content is for general information purposes only and does not refer to specific advice to any particular person’s individual financial objectives or financial needs. Before making any financial decisions contact Ben Charlton or your Financial Planner.
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