Personal Liability Management

Borrowing is part of most financial lives

Taking a loan is part of almost everyone’s life today — a car loan, a home loan, a business loan or a personal loan. It is difficult to fund a decent lifestyle without meeting a lender at some point.

Taking a loan also means paying it back, with interest, at either a fixed or a floating rate. Those repayments eat into your ability to save, and they commit you to a certain lifestyle for the duration. A good liability plan makes that journey considerably easier.

Borrow, and pay back, at ease

We will help you assess your capacity to take a loan, how much is sensible, and what a realistic repayment schedule looks like. The point of the exercise is to find a way for you to keep saving and investing during the repayment period, so that your other goals do not simply stop for fifteen years while a home loan runs.

Prepay, or invest?

This is the question we are asked most often, and the answer is arithmetic rather than opinion. It depends on your loan rate after tax benefits, the return you can reasonably expect on the alternative, your tax bracket and — not least — how you feel about debt. We will show you the calculation both ways and let you decide with the numbers in front of you.

Refinancing high-interest loans

We can give you objective guidance on whether it is prudent to repay or refinance an existing loan. Charges on refinancing can be significant, which is exactly why the decision is worth thinking through properly rather than acting on a marketing call.