“You must gain control over your money or the lack of it will forever control you.”
– Dave Ramsey –
Whatever stage you are in on your financial journey, either just starting out or you have specific goals in mind, debt management is an important area to focus on to ensure that your debts are structured in a way that is most beneficial for you.
Good v’s Bad Debt
You may have heard the terms ‘Good’ & ‘Bad’ Debt, this refers to if the debt you have works for you in a beneficial way, common examples of ‘Good’ debt are, Investment property loans, margin loans and loans to purchase shares or other investments & business loans. These are classed as ‘Good’ debts as they may provide you the benefit of being tax deductible.
‘Bad’ debt is basically a loan that is not tax deductible such as, credit card debt, personal loans and even a home loan.
Structuring your debt in the correct way can save you thousands, even hundreds of thousands of dollars over time.
At Odyssey we can provide advice around:
- How best to structure your debt
- Debt consolidation
- Debt recycling (turning ‘Bad’ debt into ‘Good’ debt)
- Reviewing your home loan rates with our Loan Specialists
