Let us start by stating that there is nothing wrong with using debt as long as it is used for the right purposes. Society often villainises debt, without considering how it can be used to actually better your financial future. Well, it’s time to stop thinking of debt as a dirty word and discover the debt strategies you can use to build the life you want.
That’s where we come in. At PCR Accounting & Advisory, we have a team of debt advisors that specialise in debt reduction and debt recycling strategies to help you change up your thinking about debt and see how you can use it to better the financial position of your business.
If you haven’t yet read the first two instalments of our debt blog series, we suggest giving those a read to learn about the types of debt and how to make debt your ally. This will give you a good foundation so you can understand the debt strategies we will cover off in this third and final blog of the series.
Rising inflation is creating added stress and mounting pressure for many families and businesses. In these instances, turning to loans and credit cards to keep up may seem like the only option. But while taking out a loan or having a credit card is not inherently problematic, it can become difficult to manage and overwhelming without the right debt management strategies in place.
If you read our blog on the 5 types of debt, you’ll be aware that personal debt is not the kind of debt you want to have and borrowing more in this way isn’t always the solution. But not all debt is bad, which is why creating and implementing a debt strategy will help you mitigate financial hardship and use debt in a way that can help you invest, grow and build the life and business you want.
One of the best mechanisms to do this is through debt recycling. It’s important to remember that being in debt doesn’t mean you can’t build wealth at the same time. For the right borrower, under the right circumstances, debt recycling can be very beneficial. It offers a way to build a solid investment portfolio while paying non-tax deducible debts like the mortgage on your home. This strategy allows you to save on tax and access assets you may not have been able to prior, all while generating a passive income through your investments.
What’s most crucial to understand about any debt strategy is that it should be created by a professional. With the help of your accountant and/or financial coach, you can develop tailored debt strategies suited to your current circumstances and considerate of your future financial goals; whether it be to grow your business, expand your property portfolio or simply improve your cashflow.
As a leading debt advisor in Melbourne, we can help you uncover suitable debt strategies to build the life you want. Call PCR Accounting & Advisory today on 03 9847 7516.
Owner of PCR Accounting & Advisory, Peter Marmara-Stewart is a top-tier accountant and financial advisor dedicated to helping clients reach their business goals and achieve financial freedom. Peter is highly regarded for his client-focused approach and entrepreneurial spirit, catering to a diverse range of professionals across a wide scope of industries all across the country. Peter’s expertise can help you plan effectively, set goals, maximise profits and protect your assets. Get in touch today on (03) 9847 7516.