UNDERSTANDING DEBT

It can be tempting to use debt to get what you want now and pay for it later. But too much debt can impact your ability to save and even make it difficult to meet your everyday expenses, particularly if you are borrowing using credit cards with high interest rates.

Avoiding unnecessary debt early in life will be a huge benefit later on. But, it is also important to understand that not all debt is bad. Purchasing assets that are likely to go up in value (such as your first home) or generating additional income using loans can often be a sound financial decision.



Ideally, try to avoid going into debt to pay for depreciating items, such as cars and luxury goods. You'll probably end up paying a lot more than you intended, so before you buy you should consider the total cost of the purchase, including interest repayments.

• Do your best to pay the balance of any credit card debt in full every month to avoid your credit card bill spiraling out of control
• Shop around - find the cheapest card that suits your needs and cancel multiple cards
• Start a budget so you know exactly how much you can afford to spend 

A Count adviser can help you:

• Review your finances and help you reach your goals 
• Minimise your bad debt
• Set up a budget and regular savings plan

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RMDP Pty Ltd t/as 360FG Financial Services is an authorised representative of Count Financial Limited ABN 19 001 974 625 holder of Australian financial services licence number 227232 (“Count”). Count is owned by Count Limited ABN 111 26 990 832 of GPO Box 1453, Sydney NSW 2001. Count Limited is listed on the Australian Stock Exchange.

The information on this web page is not financial product advice and is provided for information only.