Tag: Debt
- Before you go shopping, write a list… and if it’s not on the list, don’t buy it!
- Keep all shopping receipts over a few weeks and work out an average of your spending, as it is unlikely that you will spend exactly the same amount each week.
- Keep a notebook and jot down each and every item you buy each day. Eg. Make sure you include your take away coffee, the sandwich at lunch and the afternoon chocolate treat!
- Assess your real necessities and cut out luxury items until your debt in back in control. For example: pay TV, socialising, and adding to your wardrobe are considered luxury items.
- Credit card debt: Do you have more than one credit card? If so, you are paying more than one interest rate. If you must have a credit card, limit yourself to one card only and shop around for low rate or interest-free-period cards. This includes store cards! Consider a switch to a debit card completely and shop with your own money.
- Try to clear the balance of your credit card each month to avoid interest. If you can’t clear the balance, try to pay more than the minimum payment to limit the interest charged each month.
- Loans and other credit: If you are juggling various credit facilities you are also paying more than one interest rate. Try to roll them together into one loan and thus one manageable repayment.
- Set out your household budget and stick to it! Don’t forget to include insurances, utilities and hire purchase payments.
- Car loans: Consider whether you need to have an asset which is depreciating in value faster than the loan you are repaying. Perhaps downsizing is the answer?
- Don’t be afraid to ask for help before it’s too late! If you have attempted loan consolidation and spoken with your creditors, there are still other debt solutions to be explored.
April 14, 2010
Recent figures released by the Australian Bureau of Statistics show that Australia has avoided a recession, demonstrated by the gross domestic product showing a marginal increase of 0.4 per cent in the first quarter of this year.
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.”
April 14, 2010
Bankruptcy is a process that provides protection to people who are unable to repay their debts and they cannot reach an informal or formal agreement with creditors. You can become bankrupt voluntarily or otherwise you may be forced into bankruptcy on application by one of your creditors to the Court, in a situation where you cannot pay your debts as and when they fall due.
Bear in mind that once you go bankrupt, its very difficult and expensive to undo, and can have long term consequences.
Bankruptcy should always be considered as a last resort – there are other options such as debt agreements, that might be more suitable for you and are worth investigating. It’s always a good idea to seek professional advice before going down this route.
April 14, 2010
Increasingly people are having trouble managing their current financial debt. Retail spending is up, and unfortunately for some people that’s as a result of them spending more than they earn or can afford.
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.
April 14, 2010
We have been told for years that we are a Nation of over-consumers. Too much fatty food, too much binge drinking, too much energy/petrol/fossil fuels and too much credit?
Yes, that’s right, too much credit. It’s about time that we realised that our amount of credit card and other unsecured debt is just as damaging to our health as cigarettes and alcohol. The associated stress and worry of interest and repayments are taxing on the readily employed with a reasonable income, not to mention to effects our out-of-control spending has on those recently affected by the GFC. To those Australians who find themselves now unable to meet their credit commitments, this is very much the overconsumption of credit.
It’s all too easy to point the finger at the over-eager banks and lenders for wanting us to spend the money. We are, after all, asking for the money ourselves and then happily trotting off to spend it. We must take responsibility for our actions and our over-consumption.
The problem is… what if you can’t? Many ‘under-employed’ people have lost their well-paying jobs and now find themselves working in whatever capacity they can to keep a roof over their heads and food on the table. The reduced income however, does not stretch as far as pDebtaying all those loans and credit cards.
“There are other options out there’” Natalie Levett of Australian Financial Solutionsis quick to point out, “Most people just aren’t aware that there are alternatives which sit between ‘all OK’ and the last resort of bankruptcy”.
April 14, 2010
With unemployment figures set to rise and a slowing economy, many Australians may find themselves having problems repaying debt. A recent Dun & Bradstreet survey revealed many people expect to increase their debt amounts by using credit cards and other forms of credit, with credit highest amongst the 18-34 age group. A drop in property prices, job losses and dwindling investments are all contributors to a rise in personal debt.
If you’ve recently become one of the many Australians struggling with debt, its important to know what your options are. If your struggling with credit card debt, the best solution for you may be debt consolidation or loan refinancing. This brings all your debt repayments under one regular payment, making it much easier for you to manage. You may even find that you can lower your interest rate or monthly payments.
April 14, 2010
