Have You Reconsidered Your Leveraged Position?

As the months go on and there is more and more talk about the economy it brings to mind the fact that no-one really knows how long this depressed market will go on for and if it will get worse. 

One day you will hear an advisor say that the everything is definitely going to get worse and then the next day you will hear someone say that the market in such and such an area is going against the trend and going upwards or that a particular area is set to boom in the next 6-9 months.

During a finance report the other day, I heard one advisor say that people should be paying down their loans and credit cards with as much money as they could afford and in the same report another advisor disagreed and said to pay off credit as normal but save your cash. 

To my mind one was thinking get rid of the interest payments and increase equity and the other one was saying to squirrel away the cash for future use.

I guess every person is going to take a different view on this and one view could be influenced by your job security.  If you knew that your job was secure you could pay down your credit, whereas if you thought your job was in jeopardy it would pay to have the cash aside to live on and to meet future repayments on loans and cards.

Obviously everyone’s circumstances are different and each and every person needs to assess their own situation.

Filed Under: Interest Rates • Property Investment Tips