Debt recycling is the strategic co-ordination of cash flow to achieve home loan reduction, wealth creation / accumulation and tax minimisation all at the same time. This strategy is designed to maximise wealth creation opportunities and to pay off your home loan sooner allowing you to secure your financial future.
Debt recycling is a financial strategy that can help you create wealth for your future by replacing your home loan (non deductible) debt with investment (tax deductible) debt over time. It enables you to:
- Repay your home loan quicker saving large amounts of interest
- Build wealth in an investment portfolio outside of superannuation