Bad Debt vs. Good Debt: The Argument for Debt Recycling

Jun 7, 2019 | Personal Finance, Private Wealth

If you could buy something for $1 and sell it for $2 would you do it?

The answer isn’t yes, the answer is how many $1 can I get my hands on.

A simple concept and it forms the basis of the argument for Debt Recycling.

To put the scenario another way – if you could borrow money at 4% interest and invest that money to generate 10% interest would you do it?

UGC’s investment services have been producing great returns for our clients, with the average return for clients well above 10% annually.

With mortgage interest rates currently at 3-4% the earlier question is not just hypothetical.

Property owners with mortgages less than 80% of the value of their property can look at implementing a process to benefit from this scenario – it’s called Debt Recycling.

Debt Recycling

Debt recycling is an innovative way of investing available equity in a property and any surplus cash to generate returns that can be used to pay off your home loan and create additional wealth.

The video below shows the process in more detail:

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