Skilled Migrant Professionals February 2015 | Page 37

Finance
SMP’s financial expert
partners share their best
tips on credit and debt
management, insurance,
money management, real
estate and retirement
savings.
Even though the economy is
currently experiencing some
challenges, don’t put off your
personal choice of becoming
financially independent. Start now so
you can reach your goals sooner.

Credit
management

Aleks Grujicic,
Associate
Financial Adviser,
Anne Street Partners

Debt
management

Felicia Chee,
Senior Finance
Manager,
Anne Street Partners

Insurance

Jethro Samuel,
Risk Adviser,
Anne Street Partners

Whether it’s a holiday, renovations, gifts, or something you
just have to have, there are many options to provide you with
the credit to make your purchase.
A personal loan is more suitable for larger purchases and
will usually offer a lower interest rate than credit cards. Like
a mortgage, you can choose a fixed interest rate so you
know exactly how much you have to pay each month, or a
variable rate whereby you can make additional repayments.
An application fee is also usually charged.
Credit cards are more suitable for smaller purchases and have
the advantage of a spending limit which you are free to spend

up to whenever you choose. There is a vast array of credit card
options available with many different features (interest-free
period, reward program, etc.), interest rates and annual fees.
Ideally you would only have one card to avoid excessive debt.
As much as credit is convenient and effective, there will be
times where you will have better buying power with cash. It
could be worth the wait to reap the savings.
Also consider how much additional money you will outlay
through purchasing on credit. Researching the best
credit facility to suit your spending habits and repayment
capability is essential.

We know that debt can be stressful, but it doesn’t need to
be. A debt consolidation plan can help you regain control of
your finances and become debt free sooner.
Developing and sticking to a realistic budget is key to being
debt free. If you can motivate yourself to get excited about
saving, either into some sort of account or into your mortgage,
you will find it easier to say no to unnecessary spending.
Do you have multiple credit cards? If you can’t afford to
pay off your credit card debt each month, consider limiting
yourself to one credit card with a very low interest fee and

low maximum level of credit. Additionally, if you have debts
spread across multiple providers, including a mortgage,
enquire about refinancing with a better rate to consolidate
your debts into one easy manageable repayment.
Some debt can be ‘good debt’ too. Having an investment
earning you income is great, but it may result in paying tax
on that income. Borrowing to invest not only allows you to
get a larger investment but th