Debt Management

Almost without exception, clients of FinGuard who have home mortgages are applying strategies to rapidly repay their loans. This involves all the key considerations as discussed below. We are specialists in this field of financial management and have developed strategies that have stood the test of time and market volatility to deliver effective results for clients.

Private Debt versus Investment Debt

Applying surplus cash flow to private debt repayment before reducing investment loan balances is a far more efficient use of resources because private loan interest is not normally tax deductible whereas investment debt interest usually is.

Also, amalgamating high interest debt on credit cards and personal loans into the home mortgage can provide better outcomes in terms of debt reduction.

The use of mortgage off-set accounts can also provide positive outcomes in terms of interest minimization and budgetary discipline.

Enhancing Cash Management Disciplines

A critical issue in effective debt management for FinGuard clients is for us to share the responsibility of achieving cash management disciplines and goals with our clients. We assist our clients to identify and effectively manage their responsibilities and essentially, we do the rest.

Profiting from Home Equity

Home or property equity is the value of the home or property less the value of any mortgage and in many cases it is a substantial asset that our clients own. However, unless clients are intentional and strategic about using this asset wisely, it will remain totally underutilized over our client's lifetime.

We have strategies (and testimony to their effectiveness) that show how carefully controlled gearing arrangements can result in cash flow profit (positive gearing) as well as capital profit. This is achieved by borrowing to invest using home equity as security and in most cases, this profit is used in a very specific way to assist in the rapid repayment of private debt for those clients with home loans.

Loan Structure

At FinGuard we are able to access the mortgage broker network and secure a loan arrangement for our clients that most appropriately aligns with their financial planning strategies. Even for clients in the early years of their financial life, structuring a loan arrangement with future planning in mind is a valuable exercise.