Archive for March, 2009
Is bankruptcy an option for me?
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.
Add comment March 27, 2009
Will spending increase lead to increase in personal debt?
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.
Add comment March 25, 2009
When Debt Gets Personal, the Impact of the Recession
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.
Add comment March 24, 2009
