You may have heard that some people are able to pay off their mortgage earlier and save thousands in interest payments, or how people have borrowed money to invest in things like property or shares. This area of advice is often neglected (for instance only 1% of Australians have a plan in place to manage their debt), yet decisions about debt management can result in hundreds of thousands of dollars difference to your bottom line over your working life.
For example, if you make extra repayments of $100 per fortnight on the average sized Australian home loan being $245,0001 you would save over $27,000 in interest costs and reduce the duration of your home loan by over 7 years.
Manage your debt and make long-term savings
Debt management is a major contributor to the growth and protection of your overall wealth. Accumulo Financial Solutions are specialist debt management advisers who can help you structure your current home, car, personal loans and credit card debts and work with you to revise and develop strategies to do things like:
1. Examine cash management – When is your income paid and your expenses due? Are there any shortfalls, or monies left over for investment opportunities?
2. Debt consolidation – combining all your debts into one so you only have one low interest rate.
3. Review of your bad debt – what loans do you have, personal / home or both, credit cards?
4. Reducing your interest bills – how many different interest rates are you paying?
5. Paying off your home loans quicker – how to minimise the length of time it takes to pay off your home loans.
6. Making money available for investments – are there any opportunities to save money and invest?
7. Debt recycling / Gearing – Use your good debt to build wealth.
Using these strategies we are able to reduce your inefficient debt and increase your efficient debt. Inefficient debt is used to purchase goods, services and asset which do not generate income, and/or are known to depreciate in value such as a personal loan to buy a car. Efficient debt is used to acquire assets that generate assessable income and have the potential to grow in value.
We have helped a significant number of clients reduce their debts and get back in control with proven debt solutions. Our solutions are tailored to your needs with the goal of relieving you from the stress and worry of debt and getting your life back on track.
Like to know more?
Come in for a review of your debt situation to ensure it is structured and managed in a way that works for you. To book a review, please call us on 07 3172 6244 or email info@accumulo.com.au to arrange a time that suits you.
1 Source: AMP.NATSEM 38 – Buy now, pay later: Household debt in Australia – See more at: http://media.amp.com.au/phoenix.zhtml?c=219073&p=irolreportsNATSEMArticle&ID=2121926#sthash.2AWoP3do.dpuf
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