Debt, the financial ball and chain
With the biggest property boom in history during the early 2000’s, debt levels in Australia have reached dizzy new heights. Couple the traditional mortgage with the easy availability of other forms of credit and we have a generation of taxpayers that are carrying debt levels that would cause their grandparents to roll over in their graves. In financial planning terms this creates a ball and chain that slows financial progress markedly and can even bring it to a grinding halt. This issue must be dealt with methodically and swiftly, in order to reduce both cash flow burden and risk plus ensure a reasonable rate of savings is available to continue the wealth building process.
The traditional way of thinking is to wait until the home loan is repaid or greatly reduced before they start investing for the future. Unfortunately, due to the growing size of home loans, many people start investing later in life and the time between paying off the home and retirement has been eroded, limiting the growth potential of their investments.
What if there was a way to manage debt more effectively (ie: greatly shorten the payout term) plus simultaneously create wealth?
