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Debt Management
Sydney

To discuss your debt management needs please contact one of our qualified Financial Advisers at Future Wealth Group on Phone 1300 691 861 or peter@futurewealthgroup.com.au.

Top view on a student with bunch of overdue bills

Insight Into Debt Management

In today’s financial landscape, borrowing has become remarkably easy, inadvertently leading many into the depths of debt. It’s crucial to recognize, however, that not all debt is detrimental. Distinguishing between productive (good) and unproductive (bad) debt is fundamental. A strategic debt management plan not only aids in navigating financial decisions more wisely but also in utilizing debt as a tool for financial growth rather than a pitfall, promoting a healthier economic outlook.

The Fine Line: Good Debt vs. Bad Debt

Good Debt

“Good” debt is when you borrow to invest to purchase wealth-building assets – meaning assets that are likely to increase in value over time and/or give you an income. Good debt may also be tax deductible. An example of good debt is borrowing to purchase shares or an investment property.

Bad Debt

“Bad” debt is a loan used to purchase non-income producing assets and where the interest on the loan is not tax deductible. Using a credit card or a personal loan to fund a holiday or to buy luxury items are examples of taking on bad debt.

FWG Team

How We Can Help

Mastering debt management is key to securing your financial future and optimizing cash flow. A carefully crafted debt management plan can significantly reduce burdensome debts while strategically employing beneficial debt to foster long-term wealth accumulation. This balance is essential in achieving financial stability and growth, guiding you towards a more prosperous financial path.

Should Your Borrow to Invest?

Borrowing to invest (also called gearing) may help you accelerate the process of wealth creation by allowing you to make a larger investment than would otherwise be possible. This greater exposure gives you the potential to magnify your returns, but can also magnify your losses.

Contact Us

Residential, Commercial and SMSF lending advice

Office Hours

Monday – Friday | 8:30am – 5:00pm

Bondi Beach

Get in touch

Please call us on 1300 691 861 or fill in the form below and we will get back to you as soon as possible.