Strategic Wealth brings unique industry-wide perspective to determine the best solutions to use debt effectively.
Our team specialise in developing debt management strategies to optimise your finances and achieve financial independence sooner.
Efficient debt vs inefficient debt
Efficient debt used to acquire assets has the potential to grow in value and generate assessable income. You can claim the loan interest as a tax deduction and use the income generated by the asset to assist in repaying debt. Importantly, it can be used to accelerate the creation of wealth.
Inefficient debt is used to buy goods, services and assets that don’t generate income, and will depreciate in value or have no value once they are used. It’s not tax effective and to service the debt you have to rely on your own resources. It’s prudent to reduce this kind of debt as quickly as possible.
We can quickly establish your cashflow position to develop a strategy to rapidly reduce inefficient debt. This includes choosing the best loan structures, and in some cases, replacing inefficient debt with more efficient debt structures to then accelerate wealth through gearing and diversification.
Once your debt needs have been defined, our Mortgage Broking business partners, Your Personal Mortgage and Enable Finance Group, can help you to find a loan that is appropriate, competitive and relevant.