Debt Recycling Series Chapter 4: How Debt Recycling Affects Your Cash Flow
Debt recycling can be a powerful strategy for building wealth while reducing your mortgage, but it’s important to understand how it affects your cash flow. In this chapter, we’ll take a closer look at the key considerations for managing your cash flow when borrowing to invest and how loan structures, repayments, and investments impact your finances.
⚠️ Disclaimer ⚠️
This content is for educational purposes only and does not constitute financial advice. The examples provided are hypothetical and based on assumptions. Your financial situation and results may differ. Debt recycling involves risks, including market volatility and changes in interest rates. This content does not recommend or promote any specific financial product or service. Always consult with a licensed financial advisor, tax professional, or mortgage broker to ensure this strategy aligns with your personal circumstances.
1. Cash Flow Considerations When Borrowing to Invest
When you redraw or borrow money for investment purposes, you take on a new loan, which has implications for your monthly repayments: