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Overview
The Debt Management category in AdviserLogic Digital Advice allows you to model repayment strategies, recommend restructuring options, and help clients lower their overall debt burden. The Reduce Debt strategy specifically guides you through recommending actions like lump-sum repayments, refinancing, or consolidation to support clients in simplifying and reducing their financial obligations.
📌Note
Before completing this advice, you may want to model a Debt Management Strategy in the Cashflow Module. The modelling can be added to the advice to support your recommendation.
Strategy Selection
From the Digital Advice - Scenarios Screen, select the Add Scenario icon.
Select the client the advice is for, or select Joint to create advice for your client and partner. Select the type of advice (SoA or RoA), then Proceed To Scope.
Select the Reduce Debt strategy from the Strategy screen. Select the relevant goals set, or skip this step, and then Proceed.
Screen Navigation
The Reduce Debt section is divided into two parts.
On the left is a list of the client's existing investments and holdings, with options to release or create new funds. On the right is a summary page of the actions taken.
The first action is to release funds from the client's existing holdings and investments by selling them down or adding additional funds by selecting the Other option.
Release Funds
Release the client's existing funds by adding the amount to be released in the final Sell column, and then clicking outside the table. The released amount will now show on the right-hand side of the screen.
You can remove the released funds by hovering over them on the right-hand side and selecting the Rubbish Icon button.
Other
Similarly, select the Other button from the top of the left screen to add additional amounts and enter the requisite details.
Summary
On the right-hand Summary window, you will see a list of the transactions you have created. These transactions are deletable by hovering over the individual transaction and selecting the Rubbish bin Icon.
The Line items are divided into three main columns Existing, Sell, and Projection.
Existing
Shows the client's existing assets.
Sell
Shows the recommended transactions you have entered.
Projected
Shows the remaining amount from the Existing minus the Sell amounts.
📌Note
If the existing amount is Zero the projected amount will also be zero.
Total Recommendation Amount
The Total Recommendation Amount can be found at the top right of the right-hand side window.
Existing Liabilities
To see the client's existing Liabilities, select the Existing Liabilities from the top right of the Summary Screen.
A slide menu will open on the right of the Summary screen, showcasing the client's existing liabilities.
Asset Allocation and Product List
Access the Asset Allocation Tool and Product List from the three-dot menu at the top right of the window.
Asset Allocation Tool
The Asset Allocation Tool is the same as found in Advice Tools.
It will show the asset allocation information specific to your recommendation.
Product Detail List
Selecting Product Detail List will download a spreadsheet with a detailed product list to your downloads folder.
Apply Funds
When the funds have been released, Proceed to Apply Funds by selecting the button from the bottom right of the window.
The Apply Funds screen is similarly divided into two sections. On the left is a list of the client's existing Liabilities, and on the right is a summary screen.
Add the amount to be reduced to the Reduce column on the left-hand side and click outside of the table. The reduced amounts will now show on the right-hand summary section.
Any remaining amount will also show in the summary window. The full Available Amount must be utilised to proceed.
If the funds released are too great to cover the amount required, select the Back arrow and change the released amount to match the amount required.
Once the correct amount has been entered, select Proceed to Disclosure Fees.
📌Note
The Remaining Amount MUST be $0.00 for the Proceed button to become active.
Edit the Advice Document
You may also edit the advice document from within the scenario by selecting the Save And Preview button from the top right of any screen within a digital advice scenario and following the Advice Editing Instructions.
Fee Disclosure
After editing the text to your liking, select the Proceed to Disclosure Fees button at the bottom right of the screen. From there, add your fees and complete your advice.
Link Cashflow
After completing the advice, you may add any previously created cashflow modelling to the scenario by selecting the Link Cashflow option from the Scenario Tile. The cashflow tables will be drawn into the final advice document.
