Seven Best Practices for Debt Management

Whilst debt is not a word anyone wants to be associated with, it can
be less intimidating with an effective plan.
Here are seven practices that can help:

1. Know Your Numbers
Have a clear visual of what money is coming and going
through your accounts. Management Accounting can come
in handy; you will gain professional insight into how to best
manage your debt.

2. Analyse Your Situation
Forecasting your business expenses will allow you to see
what costs are coming up. Being prepared for them and
having a good business plan will help you budget your
expenses to decrease unexpected expenditures.

3. Amalgamate Loans
Combining your business loans can decrease your monthly
costs. Extending your loan repayment period, may increase your interest rate but will relieve
some stress.

4. Create More Revenue
“Developing personal relationships and going the extra mile to help our clients sleep at
night”- Craig Nevatt. Knowing what your clientele wants will enable you to tailor what you
sell. Have discounted deals to generate faster payment, this will increase cash flow.

5. How Much Extra Can You Budget?
Once you have worked out what you must pay each month, is there any leftover that can be
put towards paying off the debt?

6. Have A Strategy
Think about your debts and work out which ones will best suit your situation to pay off first.

7. Be Smart With Cost Cuts
Make sure you think about the big picture when making cuts on costs. Financial accounting
and coaching would be great ways to help guide you toward your long-term saving goals.

Contact Drumm Nevatt and Associates
Howick Office
Phone: 64 9 534 4382
Email: office@dnaca.co.nz
Ridge House 69 Ridge Road Howick Auckland 2014
PO Box 54 060 The Marina Auckland 2144

Tauranga Office
Phone: 64 7 576 2194
Email: admin@dnaca.co.nz
23 Myres Street, Otumoetai, Tauranga 3110