Debt & Mortgage Reduction
Financial freedom starts with debt reduction
The great Australian dream is to own your own home, but what about owning your home without a mortgage? Generally speaking it’s usually a great idea to pay off your home loan as soon as possible because the interest and costs you pay on your home loan do not have any tax advantages for you.
There are a number of effective methods that can and do result in paying off your home loan many years earlier than the bank would like you too. It’s about working smarter not harder and with our experience and knowledge we can assist most people to put in place an effective and simple plan that will result in getting rid of your home loan. This could save you many thousands of dollars in home loan repayments and result in you owning your family home many years earlier than you ever thought possible.
“Debt recycling is the process of replacing mortgage debt, or bad debt, with investment debt, which is known as good debt”
BASIC DEBT REDUCTION STRATEGIES
There are 2 types of debt; Good debt and bad debt. Good debt is simply debt that enables you to accumulate assets of some sort that grow in value and usually carries with it some tax advantages. For example, borrowing money to buy an investment property etc.
Whereas bad debt typically is used to purchase consumable items that have no real value and actually depreciate in value and also carry no tax advantages for the interest you pay.
An example here would be high-interest credit card debt used simply for consumable items such as clothing, shoes, electronics etc. or a personal loan used to purchase play-things like jet skis or motor bikes and the list goes on and on.
Being able to control debt can sometimes be difficult regardless of how much money you might earn from your job. We understand the importance of getting debt under control and not letting it control you. Therefore, no matter what your particular situation might be, we’ll work with you to create a practical solution to have you debt-free, and stress-free, as soon as possible.