Debt Management
Ways to manage your debt
Bad Debt
Any debt with an interest rate charge of 6% or above is considered bad debt. Examples of bad debt are credit cards, personal loans or payday loans.
Good Debt
Any debt we take on in order to save money from our monthly expenses e.g mortgage, or to benefit more in the future is considered good debt e.g. student loan for a degree that will lead to a good future salary.
Mortgages
Getting a mortgage, especially for your primary residence, can be one of the most important financial decisions in your life. It is very important to assess the cost of buying and ensure this is the right decision for you.
Debt-free
The first action while applying the FILIP formula is to pay back in full all high interest debt such as credit card or personal loan debt.