Debt Management & Strategies

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Debt Management & Strategies

We help people get out of debt for good using proven strategies and habits so they never have to worry about money again! When we say we are committed to helping people get out of debt once and for all, we mean it!

We get them on track by creating structures around them like setting up automatic payments; however, even more importantly than this structure is the habit changing formula that helps change their mindset around money forever!

Our team at Blue Tree Financial Planning can help you review multiple debt management strategies designed to strengthen your financial position. We can go over your unique financial situation to help you select the strategies that work best for you. Book a call here today to discuss reducing your debt.

What Types of Debt are there?

Before we discuss debt recovery, it’s a good idea to familiarise yourself with different types of debt. Some forms of debt are ‘good’ and other forms are bad. Anything you purchase that does not hold value or generate income serves as bad debt. Common examples of bad debt include:

  • Car loans
  • Personal (conusmables) loans
  • Credit cards

Good debt works to generate income and may even grow in value over time. Property and share investments are commonly seen as good debt. You can claim a tax deduction on many forms of good debt e.g an investment property. Generally, you want to reduce your bad debt while maintaining some amount of good debt.
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Manage Debt Through Cash Flow

You can focus on debt management by using your surplus cash flow most efficiently. Generally, it’s a good idea to direct your cash flow towards your bad debt to pay them off more quickly. Loans cost you more in interest the longer you have them, so paying them off quickly benefits you. There are various strategies to pay down a loan, such as:

  • Debt recycling strategies 
  • Negative gearing
  • Making payments more regularly
  • Making lump sum payments

Learn more about debt management in Brisbane by booking a call with us here.

Debt recycling

Debt recycling Debt recycling is the process of replacing mortgage debt (non-tax deductible), with investment debt (tax deductible). This strategy may enable you to start building wealth while you are still paying off your home mortgage. You effectively take out equity from your home and invest somewhere else, where you may potentially increase income and growth. Income from these new investments can be used to further reduce the mortgage balance, while the growth component contributes to wealth accumulation.

Consolidate Your Debt

Debt consolidation refers to the act of refinancing some of your debts. For example, you may refinance debt from credit cards or personal loans into a new home mortgage. Consolidating your debts can lower your overall interest rates.

Note that you should plan to continue making the same payments after refinancing or consolidating your debt. You may have to make payments for a longer period if you fall behind on your expenses after a consolidation.

Contact Us for Debt Management Strategies

Go over strategies for debt management in Brisbane by reaching out to Blue Tree Financial Planning for professional help. 


The information contained on this website has been provided as general advice only. The contents have been prepared without taking account of your personal objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies mentioned on this website, consult a financial advisor to consider whether it is appropriate for your objectives, financial situation and needs.

“We understand that everyone is unique. That’s why we take the time to understand your financial goals and it all starts with a conversation…​”