Debt Management

The use of debt to invest in growth assets is a proven long term wealth creation strategy.

Regardless of whether the borrowing is for the purchase of a family home, investment property, share portfolio or business, the objective is the same, to leverage into appreciating assets to create wealth.

With leverage does however come risk, meaning debts should always be prudently managed. To ensure optimal debt management, we can advise you on the following:

• Developing debt reduction strategies
• Understanding the difference between deductible and non-deductible debt
• Differentiating between productive and unproductive debts
• Determining whether debt levels are appropriate
• Debt restructuring
• Debt consolidation
• Assessing whether principal repayments are the best option

In order to justify not paying off debts, the rate of return on any alternative must exceed the loan interest payable and we help our clients determine the best option for them.