The first and most important step in the process. Once set, we can plan to achieve them.
APPLY FOR LOANS
We work with you to prepare for the application process giving you best chance of success.
DEBT REDUCTION PLAN
Debt reduction is about consolidating all debt into a single low interest loan.
BEST RATES & PRODUCTS
We are constantly searching the market for the best loans at the lowest rates.
If you debt is out of control, there are a few emergency measure to take.
BORROWING TO INVEST
Borrowing to invest, for the right people can be a great way to accelerate your wealth.
Why is debt management important?
Improve credit score
Your credit score basically records your history of being able to pay back your loans and debts. This can help a lender assess the risk of a potential borrower. Poor scores will could require you to pay more interest, provide more security, or reject your application out right.
This can prevent you from owning a home, borrowing for investments, applying for credit cards, and other loans.
Prevents seizure of assets
Many loans require security before they can lend the money. Not having a disciplined approach or healthy respect can lead to missed repayments and eventually seizure of assets.
Understanding your cash flow and the loan can help manage your debt obligations better and hopefully prevent any seizures of your home, assets, or that of your loved ones.
Bankruptcy is often the final step in a series of poor debt management decisions.
It is far from a get of jail free card, as it put restrictions of your ability to work in and run business. It can also prevent you from borrow money for future ventures.
Pay less Interest
Understanding debt and how to restructure it can help you reduce the amount of interest you may have to repay.
The ability to negotiate your longer term of the loan or consolidate debt into a single low interest loan can save you thousand over the course of years.
Borrowing to invest is in essence a double edged sword. It can help magnify gains but it can also magnify losses.
If a system of managing debt can be established, leveraging can accelerate wealth building while providing tax benefits in the form of deductions for interest paid.
Alternative to giving equity
When starting a business there is basically two main ways to fund it:
First is to borrow money from a lender and repay the principal plus any interest owed over a an agreed period of time.
Second is to give up part ownership (equity) for rights to any share of the future profits.
Giving up equity in the short-term can seem like money for free but when the business starts booming, it is often seen with regret. Mastering debt makes sure you can have your cake and eat it too. You are not forced into giving up ownership of your business too early for too cheap.
Why Choose Whole Wealth
We are one of the rare independent financial planners in Australia.
We continuously improve our services to make your life easier.
We are all degree qualified in our field. We have decades of experience and training.
We pride ourselves on our advice because we take the time to get to know you.
Financial planners divide debt into two types: deductible debt and non-deductible debt.
Deductible debt lets the borrower claim a tax deduction for the interest incurred on the debt. Non-deductible debt does not. Whether interest is deductible or not can have a massive impact on how expensive that debt actually is.
When interest is not deductible, you have to pay tax before you pay the interest. You can see this with an example:...
You have probably heard the term ‘positive gearing.’ It is a similar concept to negative gearing, which is certainly in the news a lot these days.
We use the term ‘gearing’ whenever debt is used to fully or partly finance an investment. If you have $90,000 of your own and borrow $10,000 to buy an investment asset worth $100,000, you have ‘geared’ the investment. Similarly, if you borrow $100,000 to buy an investment worth $100,...