Debt management refers to the process of effectively handling and controlling debts owed by individuals, or businesses.
The goal of a debt management plan is to use strategies to not only help you lower your current debt and move toward eliminating it but also being able to utilise your debt to enhance your wealth accumulation by taking advantage of investment or business opportunities.
Debt Management areas of advice can include:
- Advise on the best loan structure for tax purposes (inefficient and efficient debts) as well as preferential repayments of those loans.
- Implement a debt recycling strategy to reduce inefficient debt and boost your investment assets.
- Consider how an appropriate debt structure can provide for future investment or business opportunities.
- Consolidation of debts.
- Utilise available equity and cash savings to repay inefficient debts and boost your wealth at favourable investment timeframes.
- Use offset accounts and/or lines of credit to enhance your wealth accumulation.
- Determine your borrowing capacity through use of a mortgage broker.