Debt Management and Leverage
Debt management and leverage introduction
Other common examples of debt include:
- Mortgages on property (such as a personal residence, investment property or commercial property)
- Credit Cards
- Store Cards (e.g. David Jones or Myer cards)
- Personal loans (maybe for a holiday)
- Lease or Hire Purchase arrangements (e.g. for a motor vehicle)
- Margin Lending facilities (generally used for investment in shares or managed funds).
You will usually find that unsecured loans such as credit card debts and personal loans will have a higher interest rate than, say, a residential mortgage.
A mortgage on your primary residence is generally at a lower rate as the lender has right of recourse to the property as security for the loan, it is usually for a large amount, and the repayment period is long term.
Let’s explore some of the more common debt structures.
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