Cedric Newton

Tips on Debt Management

Can Debt Really Lead to Success?

Cedric Newton knew that the half-built granny flat sitting on his property was just untapped potential income – and to unlock it, he’d need to finish the building, and fast. But construction costs can be huge. Cedric was left scratching his head about his next move until he saw a DirectAxis bumper sticker on the back of his son’s truck. 

Cedric made his dreams a reality by taking out a personal loan with DirectAxis, and along the way, learnt that sometimes, writing your own success story means taking a calculated risk. 

For many, debt can be an uncomfortable topic. But if taken on strategically, and with an end goal in mind, it can very well act as your step up in life.

Here Cedric shares insights on how he used debt, or his personal loan, to his advantage and how you can too: 

Ask the right questions

Cedric says that for him, the formula was simple. “You need to go in with a logical mindset. Start by laying out the basics and asking the right questions: Why do you need the money? How much do you need? What are the likely long-term benefits and return on investment?”

Calculate the risk

“I can’t stress enough how important it is to ensure that your risk is calculated. For example, if you’re buying a car, it instantly depreciates in value from the time of purchase. Will you be able to get, say, 80% back when you re-sell it after a few years?”

Know when to ask for advice 

Cedric advises that you learn by example, just like he did. “I was able to seek guidance from someone who has experience with this kind of thing, and that’s especially important with a bigger project like mine was. This will help you to weigh up the risk versus the likelihood of reward.” 

Consider inflation 

“Future inflation is a very real factor, which is what I learnt from taking out my loan when I did,” says Cedric. “And given an economic climate where businesses are struggling to recover from the repercussions of this pandemic, that’s never been more relevant. It’s important to consider inflation when you’re applying for a loan. For example, when you take out a personal loan from DirectAxis, you have a fixed interest rate, so you can budget for your repayments.”

Remember: Timing is everything

“I think one of the biggest factors that worked in my favour was the timing of my loan application. Had I waited much longer, I would have faced considerable inflation in both labour and materials,” says Cedric. 

Today, he’s paid off his personal loan and leases the flat to a tenant who pays him rent every month. The combination of Cedric’s good judgement and forward-thinking had a big part to play in him getting out of the red and reaping the rewards.

Debt can be an uncomfortable prospect for most – but sometimes, it can also be the final puzzle piece in your bigger picture.

If you need a helping hand to take that next step towards your future success, find out more about taking out a personal loan with DirectAxis.

Get in touch with us today to find out how we can help you build your better tomorrow, together.

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