Debt Recyling … Good for you!

August 12, 2008 by Josie Kay · Leave a Comment 

 

Have you heard the term ‘debt recycling’?

Simply means that you have taken out an investment loan to purchase an asset like shares or property, and then use the income from these investments to repay debt on the family home.

The reason it can be such a powerful strategy to reduce debt is that the interest applied on an investment loan is normally tax deductible, whereas the interest on the loan attached to the family home is not.

Therefore, it makes sense to pay the family home off first as you are paying with after-tax dollars.

Who is Josie Kay?


Josie Kay

Hi, my name is Josie Kay, and with nearly two decades of helping people, I guess you could say I've become an expert on the subject of personal finance.


No doubt, you have heard my straightforward, no nonsense, passionate approach to managing money on the very successful Australia wide weekly radio show ‘Money Matters’. Remember my motto 'Watch out...everyone is after your money so learn to outsmart them!’


Read more about me & this site here


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