Posts Tagged Debt
Are You Talking About My Generation?!
Ever heard your parents or grandparents say “When I was your age …..” or “Its not how things used to be….”? We could actually learn a lot from our parents instead of rolling our eyes and making cute comments.
When mum or grandma were younger and they wanted a new car, do you know what they did? They saved up. When they wanted a new winter coat or a holiday? They saved up. Dad didn’t run down to the bank for a loan. Granddad didn’t whip out his Mastercard. They saved up.
The age gap between the generation is more than years… it has become an attitude gap. The newer generations think nothing of putting everything on credit and worrying about it tomorrow. The problem with that philosophy is that tomorrow is here and now we all have to worry.
Credit card debt has spiralled across the nation over the last decade and now with the GFC an unwanted reality, many Australians are finding that they simply cannot meet their credit commitments.
“We have seen a massive increase in the number of enquiries,” says Natalie Levett, Associate Director at Australian Financial Solutions. “The overwhelming majority of people are struggling with credit card debt and other unsecured loans”.
With unemployment rising, job security lower and the threat that “things have to get worse before they can get better” from the Government, it looks like this is a dire situation set to continue and those people struggling with their debts need to get help.
“We can assess your situation over the phone and discuss what options may be available to you,” Natalie says, “don’t do another generation trick of ‘sticking your head in the sand’ because these problems won’t go away if you don’t tackle them head on”.
Add comment August 10, 2009
Top 10 Budgeting Tips To Control 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.
2 comments June 8, 2009
Technical Recession Avoided?
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 or Loan 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.”
Add comment June 8, 2009
