Are You Embracing the Opportunities of the New Cash Rate - now @ 1.75%?

At its meeting today, the Reserve Board decided to lower the cash rate by 25 basis points to 1.75 per cent, effective 4 May 2016.

Are you making the most of this opportunity?

There is no better time than the present to review your debt situation, and ensure you are getting the most competitive interest rates for all of your debt - whether it be for your business, home, car, equipment and/or credit card debt.

Do you have a plan in place to manage your debt long term?

Are you managing your risk by fixing some of your debt? Do you know how much debt you should fix if you do?

In your plan to manage your debt, you should be considering:

1. your ability to service this debt both in the long and the short term, factoring in future potential changes to interest rates.

2. the order in which you will pay down your debt (eg paying down non-deductible personal debt first).

3. how quickly you choose to pay down your debt.

The more quickly you pay down your debt - the better your risk levels will be. But - it also means you will have less money in the short term for other investments.

Less debt is always less risky than more debt. But - each situation is different.

Make sure you have a good plan in place, always get the best interest rates you can, know your risks and make sure those risks are minimised.