The Great Australian Dream... To be debt free is a major financial goal for many Australians. Most people find the process of obtaining debt easy, but really struggle to pay off this debt once they have this established. Whether it is poor cash flow management, a higher interest rate or lack of motivation and accountability sourcing professional assistance may make goal a reality. Imagine the day your home is all yours, the day you do not have to make a loan repayment. Can you imagine telling your friends at a bbq the date you will be debt free? Joanne had one child, a home loan and some personal debt that she could not seem to get a handle of. She was always diligent in making repayments but was frustrated that she could not make inroads to reduce her loan amounts. Unfortunately this is a common occurrence amongst Australians these days but like many of us Joanne did not know where to seek assistance in order to take control of her situation. For Joanne the first step of the process was to meet with a financial planner whose office specialised in debt management strategies.  Together (because the client input is always paramount) they devised a plan to assist Joanne regain her control! The plan consisted of a 3 step strategy: STEP 1 - Analyse and understand cash flow: Joanne understood that she needed to better track her spending and was willing to make some sacrifices on her discretionary spending. Additionally she wished to review her current interest rate to ensure that she was receiving a competitive deal. STEP 2 - Consolidation: Like many Australian Joanne had several debts including home loans, credit cards and other personal loans. By consolidating these debts she was able to reduce the interest she was paying and to simplify her situation. Through consolidation we ensured her interest bill was reduced as well as her loan terms. STEP 3 - Restructure: Joanne was able to further utilise her cash flow and home loan to help pay down her debt by introducing a loan features such as an offset account, paying the loan weekly (not monthly). This small change in frequency of repayments saved Joanne up to 5 years off a 30 year loan term.  The changes made to her loan and lender allowed her tailor the home loan to best meet her needs. By understanding Joanne’s goals and utilising the above strategies Joanne now has the confidence, knowledge and motivation to pay down her debt sooner with the wisdom that she will save $20,000 in interest costs and reduce her loan term by 9 years. If you too wish to TAKE CONTROL of your debt and like Joanne take advantage of our debt reduction strategies by contacting our office for a complementary assessment. ----------------------------------------------------------------------------------------------------------------------------------------------------- The case study is illustrative only and is not an estimate of the investment returns you will receive or fees and costs you will incur.