Debt Management

Introduction to Debt Management

Managing debt is crucial for anyone looking to achieve financial stability.

At Six Pillars Wealth, we're here to support you every step of the way.

Understanding Debt

Debt can be broadly categorised into two types: efficient and inefficient debt. Understanding the distinction between these two can drastically alter your financial outcomes and how you utilise debt to grow your wealth.

  • Efficient Debt

Efficient debt, often referred to as good debt, is any borrowing that contributes positively to your financial health in the long term. This includes debt used to acquire appreciating assets such as shares and property, or to invest in opportunities that generate income whilst providing tax efficiencies.

  • Inefficient Debt

Inefficient debt, or bad debt, is borrowing that does not contribute to your financial well-being and often involves high-interest rates. This type of debt can quickly spiral out of control and become a financial burden. Examples include:

Credit Card Debt: High-interest consumer debt used for non-essential purchases.
Personal loans: Short-term, high-interest loans that can trap borrowers in a cycle of debt.

How we can help you

Debt Consolidation: We combine multiple debts into a single loan with a lower interest rate can simplify repayments and reduce overall costs.
Budgeting and Cash Flow Management: We create a detailed budget that helps you allocate funds efficiently, ensuring you meet debt obligations while maintaining your lifestyle.
Debt Recycling: We guide you in converting your home loan into tax-deductible investment debt by leveraging your home’s equity. This allows you to invest in income-generating assets, boosting your cash flow and enhancing your potential returns.
Negative Gearing: Our expertise ensures you can offset investment costs against your income, helping reduce your taxable income and overall tax burden.

Partner with Six Pillars Wealth

At Six Pillars Wealth, we are committed to guiding you, to ensure you have the knowledge and tools to navigate the complexities of debt management successfully.

Contact us today to learn more about how we can assist you in planning for a secure and prosperous future with strategic debt management.

Why not start with a friendly chat? Book a no-obligation 20-minute consultation today, and let’s talk about how we can help bring your dreams to life.

Make a Appointment
Address

Sydney CBD

Level 57, 25 Martin Place Sydney NSW 2000

Postal Address

P O Box 352,

Paramatta, NSW, 2124

Mutually Convenient Location

Let's meet for a coffee! We're happy to arrange a meeting at a location that works best for you.

Disclaimer: Six Pillars Wealth (ABN 68 682 649 538) as a Corporate Authorised Representative (001314068) and Laxmi (Lucky) Manna Authorised Representative (1002602) ; Lionel Iheanacho Authorised Representative (1002528)are authorised by Templestone Financial Services Pty Ltd (ABN 99 641 075 952) AFSL 523831 to provide financial services only. Any advice in this publication is of general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.

Scroll to Top