Personal Loans Smart Guide
Guide Index
- 1 Finding a lender
- 2 Types of loans
- 3 Paying it off
- 4 Going guarantor
Checklist
- Your quick-pay debts should be:
- Debt on goods that are losing their value (consumer items)
- Debt carrying high rates of interest (credit cards)
- Debt with no tax breaks (your mortgage)
Get Smart
- Tools
- For a list of non-conforming lenders, visit Infochoice (www.infochoice.com.au).
3. Paying it off
What you'll learn in this step: some types of debt deserve more urgent attention than others.
As you can see, there are different types of debt. Some debt you can afford to carry, like a HECS debt, where you pay no interest. Other types of debt, such as credit card debt incurring high interest charges, should be paid off as fast as possible.
Theres also the question of whether the debt is tax deductible or not. The interest incurred on debt related to an income-producing asset, such as shares or an investment property, can be claimed on your tax return. Meet your obligations, but generally speaking pay this off after non-deductible debt, such as your mortgage.
- Read more about:
- Clean sweep, John Collett, January 31, 2006, The Sydney Morning Herald The first step towards financial independence is to get your debt under control.
Also, see our step-by-step guide to debt management.
- Other home buying guides and factsheets
- Before you buy
- Searching the title
- Top ten home buying questions
- Conveyancing - who does it?
- Conveyancing - what to do?
