Debt & Mortgage Reduction

Financial freedom starts with debt reduction

DEBT RECYCLING

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.

5 STEP PLAN TO REDUCE YOUR DEBT

STEP 1: EVALUATE YOUR DEBTS

This is the most important step towards recovery of debt and is sometimes the hardest step for people to take. We can assist you here so that you’re not alone and give you an objective viewpoint of exactly what debts needs to be disposed of.

STEP 2: YOUR BUDGET

If you don’t already have one then a complete budget needs to be created so you know exactly where you stand with regards to money that is coming in each and every week. If you do have a budget, then it should be reviewed regularly. Either way, we can show you a simple and effective way to get this done with out any fuss.

STEP 3: MAKE A PLAN

Without a specific plan of what to do and how to do it then you are virtually running blind as to how to completely get rid of your bad debts. We will work with you to develop a plan that you can stick too to get back financial stability in your life.

STEP 4: NEGOTIATE

If required, you can negotiate with your creditors more favorable terms with the loan facilities you have with them to help with the debt reduction plan we have developed in the above 3 steps. With our experience, we can assist you to achieve a better position for you to start from with the companies who have lent you money.

STEP 5: MAKING IT HAPPEN

Like everything, getting started is important, but so too is consistency with sticking to the plan we have developed. Remember, there is always a number of options available and our experience and knowledge will give you guidance and a track to run on. Before you know it, you’ll be completely debt free, and stress free!

GET IN TOUCH WITH US FOR A FREE 60 MINUTE CONSULTATION.