Debt is only a concern if it is not managed properly

Debt is often a necessary part of achieving our objectives. Many of us have spent much of our adult lives in some form of debt, whether it’s from home loans, business loans, personal loans, or credit cards. Having a debt management strategy entails more than just “getting rid of it quickly”.

When we borrow, we use assets as security. Many people are unaware that your loan security is not fixed. We take on unnecessary risk by providing more security than is required and failing to restructure.

Your Debt Plan ensures that:

    1. the best interest rates and terms on the loan have been negotiated,
    2. a clear action plan to pay off the debt has been determined, and
    3. the assets exposed to borrowing are limited and only sufficient to support the borrowing as security.

Matt Schlyder unpacks the most efficient way to structure your debt and discusses exactly what a Debt Plan should look like in the video below.

The Ask yourself if the bank only holds the bare minimum of assets as security to meet their maximum Loan-to-Value Ratio (LVR). The brief Debt Plan guide provided below contains clear strategies for efficiently structuring your debt and discusses the significance of understanding your Loan-to-Value Ratio.

You can get the guide here

Our purpose is to guide you to manage debt in a clear, deliberate, and tax effective manner that aligns to your goals and
overall Financially Well Organised plan. If you would like to review your debt position and run through your debt plan strategy at anytime, please contact Matt Schlyder at or on 07 3833 3999.

The 10 key elements to becoming Financially Well Organised

When you have a clear strategy for each of the elements, you will be  Financially Well Organised and you too can have peace of mind your financial affairs are in order.

You might also like to read

Tax Distributions for Professional Firm Profits

After more than three years, and much anticipation, the Draft PCG outlines the ATO’s risk assessment process to determine if a Principal’s distribution profits from the firm is at risk of further ATO compliance review.

Read more
The Most Important KPI for your Law Firm’s Profit Growth

Not enough firms understand the importance of measuring and taking action to improve the fundamental KPIs around production management, in order to improve margin.

Read more
Ensure Your Firm’s Survival

The cost structures of your firm are fundamental to its longevity. Understanding the link between more revenue and additional costs required (or the opposite), cost allocations, fixed or marginal costs has significant impact on profitability.

Read more
Your Firm has Real Value

Principals of firms are constantly undervaluing, or even disregarding the value of their firms. More specifically the dollar value of its goodwill. 

Read more