Can You Live Completely Debt-Free In Victoria?

The goal for many in Victoria and the surrounding area is to live a life free from debt. In reality, most people will have some level of debt in their life. However, it can be managed and minimized to work for the individual rather than costing them money.

At 4 Pillars, the debt consultants work with people to reduce their level of debt. Depending on the specifics of the individual or couple, this debt reduction can happen very quickly, or it may happen over a longer period of time. The specific plan for debt reduction dictates how quickly the debt can be eliminated.

Good Debt Vs. Bad Debt

The 4 Pillars debt consultants work with individuals and couples to understand the difference between good and bad debt. Good debt is debt that occurs in becoming an owner of a high-value asset.

For example, a home mortgage is a good form of debt. Most people would not be able to save enough money to pay cash for a home. By using a mortgage, they are able to build up equity in the home over time until they own the property.

Bad debt is the problematic type of debt that is common in most households in Victoria. This is debt that is not associated with a valuable asset while also requiring interest payment. Unsecured debt, such as credit card debt, falls into this category.

It is possible to reduce your debt to minimal amounts or live completely debt free if you are willing to carefully manage your finances. Talking to a debt consultant at 4 Pillars can help you to develop a strategic plan to work towards your debt elimination goals.