MMS #8 | Good debt - is there such a thing? We think so... And here's why

11/12/23 • 16 min

In this episode of Money Made Simple, Liv and Jennie flip last week's episode on its head and chat about "good" debt, in part two of the debt conversation. They explain why borrowing money for certain things in life can actually improve your financial standing (remember: net worth!) in the long run.
This week's episode covers:

Two particular types of debt that are considered good
The value of post-secondary education (and we don't just mean Uni) in terms of dollars and cents
How student loans actually work - and how much better they are than back in Jennie's day!
The tricky topic of home ownership in NZ - and why it's so entrenched as the Kiwi dream
Why there's such a HUGE difference between mortgage debt and consumer debt - for several reasons
Our personal stories around home ownership

Resources we mention in this episode:
Sorted.org calculators
Hopefully by the end of this episode you'll have a SUPER clear idea around what types of borrowing you don't need to be afraid of, and how to use debt that will quite literally "pay off" in the long run.

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Disclaimer: This podcast contains personal opinions and is intended to provide educational information only. It doesn't relate to your particular financial situation or goals and is not financial advice or recommendations. Simplicity New Zealand Limited is the issuer of the Simplicity KiwiSaver scheme and investment funds. For product disclosure statements please visit Simplicity's website simplicity. kiwi.

Two particular types of debt that are considered good
The value of post-secondary education (and we don't just mean Uni) in terms of dollars and cents
How student loans actually work - and how much better they are than back in Jennie's day!
The tricky topic of home ownership in NZ - and why it's so entrenched as the Kiwi dream
Why there's such a HUGE difference between mortgage debt and consumer debt - for several reasons
Our personal stories around home ownership

Previous Episode

MMS #7 | Bad debt - the junk food of the financial world. How to tackle it?!

In this episode of Money Made Simple, Liv and Jennie are tackling debt! This episode is part one of two, focusing first on what we call the "bad" type. Acknowledging that things aren't always as black and white as "good debt" or "bad debt", they explain why they are making this distinction and what the implications of bad debt are, in the short and long term.

This week's episode covers:

What exactly we mean by "bad" vs "good" debt
The long-term impacts of bad debt
The pros and cons of credit cards and buy now pay later (BNPL) schemes like Laybuy or Afterpay
Some handy (and maybe not so obvious) tips for tackling debt
How credit cards MIGHT sometimes be useful (hint - you need to be REALLY disciplined!)

Resources we mention in this episode:
Sam Stubbs' Money Made Simple ebook
We hope that by the end of this episode, you can start to differentiate between different types of debt, and their impacts on your finances over the long term. In this way you can start to cut bad debt out of your life, for good! And live happily ever after (too far, we know, felt cute). %)

Next Episode

MMS #9 | Let's talk about the basics of mortgages!

In this episode of Money Made Simple, Liv welcomes a new guest to the show - Dan Maguire, Simplicity's co-head of lending. Liv and Dan chat all about mortgages in New Zealand. They break down exactly what a mortgage loan actually is, how they work, and de-mystify the different types of mortgages you may hear thrown around by home owners and investors alike!
This week's episode covers:

The simple mechanics of how a mortgage works
Who offers them (and who can get one)
The main different types of mortgages you can take out (we explain the nuances - offset, table, revolving credit; all the jargon!)
The in's and out's of fixed and floating rates
How and why Simplicity is able to offer lower cost mortgages to its KiwiSaver members buying a first home
Eligibility requirements for Simplicity first home loans

Resources we mention in this episode:
Sorted.org mortgage calculators
Interest.co.nz borrowing hub
Moneyhub mortgages comparison
The subject of mortgages can seem convoluted and tricky, we know. So hopefully by the end of this episode you'll have a clearer idea of how they work, what you need to do to get one, and what kind of mortgage may suit your needs (either now or in the future)! You'll also know more about Simplicity's low-cost first home loans.