Key points about debt
Debt is not static. It is like a snowball when payments are missed or ignored. And this is not just the financial impacts associated with large debt – there is also the resulting health, mental health, family, and social issues that occur.
Key points to note when debt is evident:
Debts can be manipulated reducing repayments and amounts by changing various levers.
Levers:
Sorted.org.nz provides calculators that you can use to calculate the impact of making changes to interest rates, duration of the loan and repayment amounts. This is found under the tab TOOLS.
Hold down ctrl on your keyboard as you click this link so the page opens on a new tab.
Becoming familiar with the impacts these adjustments to debt can have in reducing expenses is important for financial mentors.
Time to take a break
This was a big chunk of learning, so it is time to take a break.
