All of this can be quite overwhelming, particularly if you or your family are already struggling financially or heading towards debt. It might become difficult to make rent or mortgage payments, kids school fees, general bills and so on. There are number of debt solutions out there to improve your situation. Loan refinancing or debt consolidation can be arranged for those with personal, family or business loans. Debt agreements and financial informal arrangements can be sorted out to suit your personal, business or family needs and ensure that you get back on the right financial track.

The government isn’t offering many solutions for those who are in debt or struggling, which is why you need to take your finances into your own hands. It is all too easy to blame the economic climate, the government, the banks for your financial struggles – and it’s likely that one or more of those factors has contributed. However, it is important to not ignore your situation and to seek help. Financial advisors can assist you with debt solutions, and there are also website tools and online information to get you started.

So if you are ready to take your finances into your own hands and not let the economic climate affect you, why not give Australian Financial Solutions a call today for professional advice and debt solutions? Contact them via their website or call them on 1300 237 669.

We have summed up five of the key reasons as to why booking an appointment with a financial advisor is the best solution:

1. 1. Expert advice. This may seem like an obvious one, but it is generally overlooked. Financial advisors often have decades of experience in their field, and know exactly what they are talking about. Reading bills or contracts with financial jargon can be extremely daunting and can often lead to mistakes, so seeking the advice of an expert is a great idea – they can help you decipher the jargon, make sense of your finances and point you in the best direction.
2. 2. Tailored to your circumstances. Financial advice from specific financial solution companies are tailored to your personal needs. When asking advice from your bank, mortgage lender or other big corporation, they are only able to advise you in a general way –everybody gets the same treatment. However when seeking debt assistance or finding a way to manage your debt, financial advisors sit down with you and work out the best solutions for your personal situation.
3. 3. Solutions, solutions, solutions. Australian financial advisors can suggest and provide many different answers and solutions to your debt problems. When trying to find your own solution, the task can become overwhelming, and often banks and other institutions are not forthcoming with adequate advice. Financial advisors can proffer a number of different solutions including: debt arrangements, debt management, loan refinancing and debt consolidation, and many more.
4. 4. Free service. It is a common misconception that visiting a financial advisor is expensive. However, many Australian financial advisors charge no fee whatsoever for phone calls and initial consultations, and often even after extensive advice will still charge no fee.
5. 5. No more confusion. Financial advisors can explain the jargon, talk to the creditors and banks for you, and provide you with endless information and tools to assist in your process back to financial stability. Advisors are there for you to utilise and can help out no matter what your personal circumstances may be.

So if you are sick of dealing with endless large corporations, listening to hold music and staring at the piles of financial papers on your desk – why not call Australian Financial Solutions today for top level financial solutions and advice? Contact them via their website or call them on 1300 237 669.

Is Debt Consolidation right for me?

Most people believe that the only way to get a Debt Consolidation option is to go to the bank and apply for one. If you are solvent, this seems like a good method.  But is it appropriate for people who are insolvent – i.e. unable to pay their debts when they fall due? Also, if you are on a low income and have a high amount of debt, Debt Consolidation might not be the right option as you may not be able to afford the loan repayments.

If you are in one of the cases described above (insolvency or low income), you might want to consider other legally accepted forms of Debt Consolidation such as a Debt Agreement or a Personal Insolvency Agreement.

What is a Debt Agreement and what does it involve?

You may propose a Debt Agreement to your creditors if you meet certain criteria. The proposal may involve you making regular payments to repay creditors over a longer period of time (say 3 to 5 years) and may involve you paying less than 100% of the debt due. All interest charges are stopped under a Debt Agreement. The regular payment you will make under your Debt Agreement will depend on your income and expenditure.

What is a Personal Insolvency Agreement (PIA) and what does it involve?

A PIA is a procedure whereby a debtor may propose an arrangement with creditors when the debtor cannot meet the debts due. A PIA would usually be considered when a Debt Agreement was not able to be used. The form of the Personal Insolvency Agreement proposal that the debtor may put forward to creditors will usually involve either, a sale of all of the debtor’s property or an offer to contribute money in instalments over time, or a combination of both.

Our team at Australian Financial Solutions are focused on providing Debt Solutions to people with debt commitments that have become unmanageable. If Debt Consolidation is not right for you, we can assist you with Debt Agreement or Personal Insolvency Agreement.  Contact us today on 1300 237 669 or info@austfinsolutions.com.au for a free debt analysis.

Parents often expect their children to make the leap from a childhood savings account to managing a credit card. Learning the difference between “good debt” and “bad debt” is crucial to wealth building and debt management. Building a line of credit is vital in today’s society. However, accumulating credit card debt, paying bills late or avoiding paying bills altogether can negatively affect your children’s credit score as well as their future. It is paramount for parents to help teens understand the value in having a good credit score. If necessary, show them your credit reports so they see what type of information the reports contain.

Here are some basic tips to help your teenage children be debt free:

• Move gradually to a credit card account: help your children manage cash through their own checking accounts before adding a debit card and later, a credit card.
• Set limits: a good way for your children to be debt free is to limit their use of credit (use lay-by as an alternative to credit, use prepaid cards for mobile phones etc.)
• Encourage them to maintain good payment habits: putting together a budget, making their payments on time, making more than the minimum payment, keeping the balance low
• Help them identify savings goals and encourage them to save regularly to achieve them.

Financial habits are taught, not assumed. Many adults that have spending problems or excessive credit card debt may never have learned how to handle money. The habits that are taught as a teenager and cultivated as an adult can have life changing implications for your teenager. Australian Financial Solutions provides financial solutions to people in debt. Contact Australian Financial Solutions today to obtain a free and confidential financial assessment.

Purchase and cash advance rates on some credit cards, particularly some low rate credit cards, have gone up by more than the official cash rate this year. Card issuers have also been changing their low-rate or zero-rate balance-transfer deals, shortening the periods for which the low rates apply. Many cards have purchase rates over 20 per cent now, with cash advance rates even higher!

The current high interest rates make it difficult for people to manage debt — especially if only making the minimum payment. In fact, just making minimum payments can make even the smallest balance over a decade to pay off and thousands of dollars in finance charges. It’s no wonder debt reduction seems so hard. Here are a few basic steps that should help you pay off your debt sooner, with less interest, and improve your credit score in the process.

• List all your credit cards and include the outstanding balance, interest rate and minimum payment
• Order the cards on the list so that the credit card with the highest interest rate is at the top, and the lowest is at the bottom.
• Total the minimum payments: this total will be your absolute lowest monthly payment. But you should pay more than the minimum in order to repay the debt quickly.
• As your payments come due, pay the minimum on each card except for the one at the top of your list. That one has the highest interest rate and is costing you the most money. Whatever additional money you can pay, apply it to that card.
• Continue this process until the first card is paid off. Repeat this process until all cards are paid off.

If you are struggling to manage paying off multiple credit debts from numerous providers then you might consider Debt Consolidation. It is one way to consolidate all your debts into one easy to manage repayment. Australian Financial Solutions can assist by you by providing an independent assessment of your financial position to determine whether debt consolidation is right for you. Contact us now!

What are the advantages of debt consolidation?

Having all of your debts and credit cards rolled into one big debt can be an attractive option especially when one considers the savings that can be realised:

• Save money by reducing the amount of interest you pay
• Reduce repayment periods
• Improve personal cash flow
• One easy to manage repayment

What should you consider before choosing debt consolidation?

• Match debt consolidation with a change in behaviour:

Debt consolidation may provide significant relief. However, it is not going to magically solve your financial problems. As new debts arise the likelihood of defaulting on these payments increases.

• Know the risks of debt consolidation:

Debt consolidation can bring you substantial benefits but can affect your credit score. Your smaller debts and credit cards will have built up a certain amount of credibility. When all of your smaller accounts and credit cards are closed in favour of a debt consolidation loan, your credit history is shortened thereby reducing your credit score. Also, having additional credit enquiries on your credit file reduces your credit score;  try to minimise the number of attempts you make to consolidate.

Whilst it’s important to understand the risks involved with debt consolidation, depending on your personal circumstances, consolidating your credit cards and other debts into one repayment may provide significant benefits in terms of savings and reducing the repayment term. Australian Financial Solutions can assist you by providing an independent assessment of your financial position to determine whether debt consolidation is right for you.

Contact us now on 1300 237 669 or enquire online for a Free Financial Assessment.

Watch out for these bad habits and be deft free.

1. Not making a budget

Budgeting is the most effective way to gain back control over your finances. Not only will it give you an idea about how much you spend and for what, it will also help you find out which expense you can trim to free some cash. It might as well slow down your compulsive spending habits and help reduce your debt. Check out our Budget Planner Debt Help Tool.

2. Paying bills with no particular order

By paying off the balances of your credit cards first, you could put yourself in deeper trouble. You should prioritise your expenses and debts and make a list of the amounts you owe by interest rate rather than by balance. After paying for your living expenses (house or rent payment), groceries and medical care should top the priority list. Next comes the car payment and secured loans. Working out a bill payment schedule and setting aside money for each pay cheque should help you manage your debt more smoothly.

3. Not checking your credit file

The information contained in a credit file can be used in determining a person’s credit-worthiness. Request a copy of your credit file today to ensure your credit history is accurate and up-to-date. There might be some errors. Just an example, payment marked late that came in on time could raise your interest rates, lower your credit score and affect your ability to obtain credit in the future.

4. Using multiple store credit cards

It might be tempting to get a store credit card in exchange for a 10% discount. But in the grand scheme of your credit history, these cards are not very beneficial. They might carry a highest interest rate you’ll be forced to deal with if you don’t pay off your balance each month. They can also negatively influence your credit score: just the act of applying for the credit card will put a small dent in your credit score. We recommend limiting the total number of credit cards you have to just two, if you can: one you can pay off each month and one with a low interest rate for those large purchases you’ll pay back over time.

5. Making credit payment late

Making a late credit card payment may not seem too big a deal. But it can end up being really costly and effect on your credit score, especially if you have a history of late payment. A payment that arrives at least one month due can throw your account into default and triple your interest rate. Your creditor will charge a late fee but might also notify the credit bureaus. In the end, late payment can have significant effect on your score, affecting your ability to get new credit in the future.

Although the recession has “technically” been avoided, this news will not help those Australians who are still struggling with debt.

Many people still find themselves in jobs which are “at risk” or have been laid off already which means that the stimulus package monies have probably already been spent in the wake of rising household costs, petrol costs and credit commitments.

When it comes down to feeding the family or paying a credit card debt or loan, it is obvious some Australian families are having to make hard choices.  These decisions leave them feeling they have no option left but to file for Bankruptcy, not knowing that there are alternatives to bankruptcy, such as a Debt Agreement orLoan Consolidation.

“Life shouldn’t be a struggle.” says Natalie Levett, Associate Director at Australian Financial Solutions. “There are alternatives out there and people need to be aware that bankruptcy can be avoided as long as you get help sooner rather than later.”

The Australian Bureau of Statistics reported on the 4th of Feburary, 2009 that in seasonally adjusted terms (not including the impact of the government’s December 2008 ‘Stimulus Package’), all retail industries had a sales increase in December 2008, with Food retailing (+1.4%), Department stores (+8.3%), Clothing and soft good retailing (+5.8%), Household good retailing (+9.9%), Other retailing (+2.6%) and Cafes, restaurants and takeaway food services (+1.7%).

With the impending stimulus packages to be released over the next couple of months, and the government encouraging retail spend, some people may find themselves in a worse of position than before with over spending.