Debt Reduction

Pay off your home loan sooner (Debt recycling strategy)

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
  • Increase your tax deductions each year saving you tax
  • A debt recycling strategy can be personalised to your situation and can also complement any other financial strategies that are appropriate for your situation.
  • Debt recycling is a long term strategy that can help you achieve your retirement income goal. Debt recycling can provide an alternative to superannuation by allowing you to accumulate wealth in the non-superannuation environment which provides access to funds in the future if required. This may be appropriate if you are looking to retire prior to your preservation age.

Debt recycling simply uses your existing home loan repayments more efficiently to get a better result through interest savings, tax savings and long term wealth creation.