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The True Cost Of Too Much Debt

Unfortunately, too many medical professionals carry mortgages that are too big and drain cash flow.

It seems like there is sometimes a competition to see who can buy the biggest and most expensive house.

Whilst I advise my clients to not fall into this trap, they don’t always listen, and years later typically end up regretting their purchase decision, as it starts to affect so many other areas of their life, not in the least the amount of (financial) stress they experience.

There is also a tremendous opportunity cost, in that it prevents you from investing, meaning you miss out on valuable compounding benefits over time.

As such, it may force you to work longer and impact your retirement options and lifestyle years down the track.

Time is our most precious resource, also when it comes to investing and planning for retirement.

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Business debt

For those doctors or dentists in private practice, there is another debt element at play.

Typically you have to take out large business loans to facilitate the purchase or start-up of the practice.

This debt generally has to be repaid from after-tax cash flow, which many medical professionals fail to understand.

In a start-up phase, this puts further pressure on your cash flow of course. It is therefore essential you seek specialist tax and finance advice and undertake rigorous planning beforehand to understand how this affects your cash flow.

Strategic debt advice is one of our core service offerings, so if you would like to discuss your personal circumstances, please feel free to contact us on 08 9381 2704 or email me at

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