Securing and managing credit

Research output: Chapter in Book / Conference PaperChapter

Abstract

This chapter discusses the different kinds of credit available to clients how credit can be used wisely to the client's advantage, and some pitfalls to avoid. Although financial advisers often focus on investment opportunities, there is a critical need first to 'settle' the client's current financial affairs so that he or she can concentrate on building or maintaining their wealth. There are two reasons for this. The first is that, while a client is concerned with burdensome debt, he or she cannot think clearly about long-term investment results. The client may take a more conservative investment outlook and may hold off making necessary long-term decisions. The second reason is that, while a client is allocating a high portion of his or her after-tax earnings to repaying borrowed funds, that money cannot be used for investment purposes. This chapter also briefly looks at clients as lenders so that both sides of the borrowing process can be appreciated.
Original languageEnglish
Title of host publicationFinancial Planning in Australia: Advice and Wealth Management
EditorsSharon Taylor, Roger Juchau
Place of PublicationChatswood, N.S.W.
PublisherReed International Books Australia
Pages251-291
Number of pages41
Edition8th
ISBN (Electronic)9780409347616
ISBN (Print)9780409347609
Publication statusPublished - 2017

Keywords

  • credit
  • management

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