Tag: saving money

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Debt Consolidation Credit Card Consolidation Personal Loans

Saving Money On a Lower Income

saving money on a lower income

There is a range of strategies you can employ to make saving money o. One of the major areas that can save you a lot in the long term is debt consolidation. There are also some other lifestyle choices you can make to improve your financial situation.

Many people think it is all too hard, but everything you do will help, even small changes can make a huge difference. We can all employ a range of measures that will prevent budget blowouts without sacrificing all the things you like doing.

If you are finding yourself on the roller coaster of no savings, bad debt management, poor (or no) budgeting and everything is a bit chaotic, Australian Lending Centre has some tips and tricks to get you out of bad debt employing activities such as debt consolidation, saving and feeling in control again.

First things first – Where Does Your Money Currently Go?

If you don’t yet have a budget, keep a financial diary for your pay period and track how you are spending your money. The Money Smart website offers a great money tracking app to make this easier. This will give you valuable insight into your habits and areas you can save.

  • What are you spending your money on?
  • How much is left over at the end of the pay period?
  • What money needs to go out on payments and bills?
  • Are there any areas of waste or unnecessary spending?
  • Are there areas where you are going backwards and getting into arrears?

Planning and Budgeting  – Where Will Your Money Go?

Once you have a record of what your current spending entails, get online to the Money Smart website and complete the budget tool. Be sure to include all your debts, payments, bills, and income. Mark payments and amounts in your calendar. Most bank online apps have the ability to schedule payments, so they come out when they are due, but if these are also in your calendar you won’t get any unexpected payments coming out. These regular payments can including things like:

  • Mortgage or rent
  • Car payments, car registration and insurance
  • Household/health insurance
  • Credit card payments
  • Loan repayments
  • Store card payments
  • Afterpay/ZipPay (remember that defaulting on these can effect your credit score)
  • Utilities such as gas and electricity (you may want to discuss bill smoothing with your provider – this is a regular payment over time rather than a massive and shocking bill each quarter)
  • Internet and phone

Bad Debts? Talk to the Credit Provider

The bottom line is that companies want to be paid. They are always receptive if you explain your situation, especially if you have, or are, experiencing financial hardship. You may be able to negotiate with them to reduce or put a hold on payments until you get back on top of things. Of course, you still have the pay the money back, but a hiatus on payments can help in the short term. Some credit providers will allow you to reduce the final figure if you can pay the debt outright. If they offer this, it may be time for debt consolidation. If you are too overwhelmed by the phone calls and letters, then talk to us about negotiating on your behalf.

Next Steps – Take Control With Debt Consolidation

When loans and credit cards get beyond what you can cope with in terms of interest and late payments, it might be time to call in help from the experts. Companies like Australian Lending Centre can offer a solution for a bad credit debt consolidation loan. This is where you negotiate with lenders for a reduced payout figure and then apply for a single loan that will cover all your bills in one payment with a lower interest than general credit cards and late payment fees. Having one simple debt consolidation loan payment to go out eat pay period is going to be a lot easier than trying to remember everything. The sooner you simplify your payments, the sooner you will be in an easier financial situation.

Money-Saving Tips

Turn off the TV

Are services like Netflix, Foxtel, Stan, Hayu and the iTunes store getting beyond ridiculous? Try cutting out all but the most popular one, to cut back. Turning off the TV will also help cut back on power and expose you to less spend-inducing ads. You might also have app subscriptions that you don’t need. Although these are small they can add up in a month.

Stop Hoarding and Start Selling

If you have closets full of unwanted clothes, try selling them online. A good clean out also helps you to see what your wearable wardrobe looks like so you can plan your clothes shopping to maximise your shopping budget. Also if you buy anything make sure it goes with the other items in your wardrobe. Take advantage of sales, why pay retail when most clothes will go on sale towards the middle of the season.

Look for those habits that add up

You can cut back on your habits, such as drinking alcohol during the week, smoking (probably goes without saying but your health and budget will thank you), buying coffees, can all save a surprising amount as well as having general health benefits. Limiting your drinking to the weekend can save hundreds a month, depending on your drink of choice. That bottle of wine after work at $15 a night can really add up over the week. Similarly, a $4 coffee each day is $20 a week. Make coffee at home in a keep cup and save money and the environment.

Stop using your credit card

By switching to using your debit card or cash for purchases, you will be more aware of your spending habits. It will also prevent the slide into bad credit debt.

Be frugal at the supermarket

Most of the time, buying in bulk or larger sizes are cheaper over time, so check on the prices for the larger sizes. Don’t shop with kids. Pester power is a thing and can increase your spend at the checkout. Never shop when you are hungry. Buy less meat, which is expensive, and opt for more meat-free alternatives, such as tofu, beans, and pulses.

Eat Smarter

With a busy life, planning meals can be a real chore, but while using services like Uber Eats seems like a good alternative, you are actually paying $5 on top of takeaway prices and it really can add up at the end of the pay period. By shopping in bulk, cooking healthy meals and taking the leftovers to work for lunch, you can save quite a lot each day.

Are You Missing Out On Government Payments You Are Entitled To?

Lastly, make sure you check all your entitlements with regards to government payments. As a low-income earner, you may be eligible for some form of financial support if you aren’t already receiving a government benefit. When every dollar counts it’s worthwhile claiming all you can. To check on payments and entitlements, check out the Department of Human Services. Even a small additional payment may ease your financial burden. Living on a low income is hard, but these payments are designed to help.

Small Changes with Big Returns

Once you have a clearer picture about where your money goes, you make changes to your lifestyle and start on the path to greater financial control, the happier, healthier and less stressed overall you will be.If you need help with debt consolidation, please get in touch. We’d love to hear from you.

Note: This information is general, and doesn’t take into account your specific personal and financial circumstances.

Categories
Personal Loans

Practical Money Saving Tips

secured personal loan

If despite having a good budget, you are still spending more than you should, then it’s high time you must follow these practical money saving tips.

There are three steps involved in saving money

First, know how much you have

  • If you’re not a fan of a balance sheet, you can start doing this simple work today. Create a list of your assets and liabilities to know where you are financially. You might be earning a few thousand dollars, but your debt is over the edge. Or, you don’t have a decent income but you have zero debts. The exact amount of your asset versus your liability will help you identify serious problems with your finances and the areas that you can change.
  • One of the most practical money saving tips is to get a free copy of your credit report from a major credit bureau. It is a summary of your current and past financial obligations. You can also check the additional fees and penalties, and the accounts which should not be there anymore. By looking at your credit report, you will understand which debts are pulling your credit score down and which ones must be paid off as soon as possible. You can dispute negative entries which are inaccurate directly with the reporting agencies or your credit provider.
  • Collect all your bills and receipts. categorize them according to use—if they’re for home expenses, transportation, work-related, school,-related and so on, put a label on each file. That way, it will be easy for you to check which bills have been paid and those which were not.

Second, pay off your current liabilities

It’s not easy to pay your debts especially if you have too much of them. IN fact, debt repayment is a long journey and a lot of people have given up and settled for high interests and poor credit rating because they lost the motivation to reach their financial goals. Here are ways to pay off debts when you have limited resources:

  • Organise your debt by balance, minimum payment, interest rate and due dates. Check the billing statements or ask your lender for details.
  • Use the “debt avalanche” method to save money on interests. It is the method that pays the debts with the highest interests first and the lowest interest rate, last. By paying off the debt with higher interest, you stop the interest from accruing on your accounts.

An Example

You have a credit card debt of $10,000 with an interest rate of 20%. Each month, while you pay off your debt, a certain portion of that payment will go toward the interest.  If you pay off that debt first, you will be able to save $2000 in a year. You can consolidate your loan to pay your credit card debts or you can make extra payments each month to rip through the interest faster by making more payments toward the principal.

  • If you have limited income but you want to eliminate debts one by one, you can use the debt snowball method. Start paying the accounts with the lowest balance and work your way up to the ones with the highest balance. You may not save a lot of money in this process and it may not be the most practical approach, but it would motivate you to keep going, knowing that you are making progress. For example, you have an outstanding credit card debt of $10,000 at 20% APR, a $5000 short term loan and small consumer debts worth $500 from Store A, $300 from Store B and $150 from Store C, all at 5% interest. If you pay off your consumer debts amounting to $950, you will only save $47.50 in interest. But, it will be a good emotional experience that will motivate you to kick your hefty debts to the curb.

Third, find the money to save

Build your wealth on a daily basis. Here are simple acts of savings that could save you hundreds to thousands of dollars in a year:

  1. Keep your loose change
  2. Drink water instead of juice or soda
  3. Bring your own homemade or instant coffee at work
  4. Pack your own lunch and snacks at work
  5. Remodel your clothes. You don’t have to be an expert tailor or dressmaker to do this. Scissors and a little bit of creativity can do the trick.
  6. automate payments to avoid paying late fees on credit cards, utility bills and the like
  7. Declutter your home and office. You might be surprised to find recyclable items there.
  8. Choose thrift stores over high fashion boutiques. You can find designer clothes and good quality materials which were slightly used in there.
  9. Use your time to earn money. You don’t have to be a full-time worker to do this. Small and odd jobs may do, as long as it will give you extra money to save. You can make money out of your passion or hobbies.
  10. Avoid window shopping. It’s too tempting to resist.

Now you are aware of practical money saving tips, you will be able to take greater control of your finances. When you get started on saving, you will find it exciting and a little bit frustrating at the same time. There are times that you would be tempted to use your credit cards once again. So, if you’re finding it difficult to balance your debts and income—you can get a little help from a debt consolidation company to help you pay off all your debts and start all over again with only one debt to worry about. It will help you focus on saving and repayments, and hopefully on building your wealth as well.

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News

How Pet Owners Can Save on Pet Food

money management tips

Owning a pet can be incredibly rewarding, fulfilling and fun over the course of your furry friend’s life, but it can also get quite expensive. We don’t always consider the long-term costs of pet ownership because let’s face it; they’re cute and cuddly so the benefits usually take precedent over the practicality. Adding a bag of dog food and treats to your shopping list won’t break your budget but there are always ways to save on pet food. Here are a few ways, and why they’re financially viable for you:

How to Save on Pet Food

1. Cook it yourself
Cooking your pet’s food sounds like extreme dedication, right? You might think that only people with plenty of free time and plenty of spare cash would bother to cook for their pets but it’s not the case. Cooking for animals can be cheap and a set-and-forget approach if you do it right. It’s very, very similar to meal preparation for yourself (or any human) – basically you purchase some cheap meat cuts, veggies that your pet can eat, and voila. Throw it all in some stock and you’ve essentially made a cheap soup that you could eat if you wanted to! Freeze it in portions if you’ve got freezer space, or keep it in the fridge and dish it out each night. They’ll love it, and it will work out better for their health and easier on your wallet. You can also make your own treats for little cost and effort! There are various recipes online for the keen owner who’d like to try making their own pet food.
2. Pay for ingredients
So if you’re not into the idea of cooking food yourself, make sure you’re not ripping yourself off by being drawn into a fancy name-brand food that is actually made of the same ingredients as its cheaper counterparts. Do some research, read some labels and don’t overpay. On that note, find out what brands or ranges of food is the best value for money. You’ll find that higher quality foods equate to smaller portions for your animal, so although you feel like you’re spending more at the time, you won’t need to replace the food as frequently.
3. Buy in bulk
This is a rule for either buying food in store or making it yourself. Keep track of specials at the supermarket as well as the pet shops to maximise how much you can save, sometimes it works out cheaper to grab a huge, seemingly endless bag of dog-chow because it will last you for four months instead of the smaller bag you’re replacing each fortnight. If you’re buying ingredients, buy in bulk when you have fridge or freezer space.

Pets are fun, but man do they eat. If it feels like your animal is eating you out of house and home – take a look at their diet. Better food can save you money; not only at the checkout but on the vet trips you won’t have to take because your dog or cat is less likely to suffer from skin conditions and organ problems. Plan ahead, save some money and make you and your furry friend’s life just that much better!

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Budgeting Financial Fitness

Life Hacks on Saving Money and Smart Spending Habits

smart spending habits

Every day you are bombarded with ways to spend your money economically and you might be frugal at the grocery store but it might not be enough to make a difference. If you want to have enough money saved up to retire comfortably then you will have to think smart and use every life hack in the book. The amount that you can save right now might surprise you but the biggest effect will be how much you are able to save over time. Do not just think about how much you are saving now, think about how some money saving life hacks can help you save a ton of money over your lifetime.

Life Hacks on Saving

If you have a mortgage while saving into a normal savings account at the same time, then you are likely losing a bundle. It is better to put excess cash into your mortgage. Your savings account is likely paying you a smaller interest rate than you are paying on your mortgage so it would be better for you to pay off your mortgage first.

Or to really hack the interest rate then the best thing to do would be to put that extra cash into an investment that gives a better return than what you pay for interest on your mortgage. Knowing how to save is almost as important as the act of saving itself.

Do not ignore the freebies that you get by making larger contributions to your superannuation fund. If you are in a lower earning bracket then you might be eligible for co-contributions of over $500.

Don’t Give Away Money

All the life hacks in the world will not do your savings any good if you just forget about it and let the government take it. Accounts totaling up to $1.24 billion have been left or forgotten for over three years allowing the government to hold those accounts until they are claimed. Even more likely, there are over $16 billion in forgotten super funds that are eligible to be claimed.

Sometimes things are worth paying for but when it comes to getting your loans from a bank it can pay to look away from the big banks. The added cost of going to the big banks instead of non-traditional lenders can cost thousands when you consider mortgage, personal loans, and credit card debt over a lifetime.

If you are receiving a tax refund at the end of the year it might seem like a nice surprise but you are essentially giving the Australian Tax Office an interest-free loan. You would do much better to apply to withhold your tax payments until the end of the year and put that money to use before you have to pay your taxes. Make sure to have the money available to pay your tax upon tax time.

You might not be giving away your money to the government or the big banks. The small purchases each day add up too. If you saved $4.15 a day, the price of your morning coffee, and invested that in a high return investment vehicle that averages around 8 percent then you would have $1 million in 50 years. Not all life hacks work out over-night. Some of the most profitable life hacks can take a lifetime.

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Debt Management

Tips for Saving Your Money

Money Saving Tips

With living costs always on the rise, and those stressful interest rate hikes, debt can be an easy category to fall into. However there are a few everyday things that may help you to save money. Here are a few great tips to assist your dwindling wallet:

  • Write down all your expenses for the week, find out where all your money is going and prioritise, can you cut back on any little things? You will be surprised how much you can save in a week if you don’t buy that extra car magazine.
  • Give yourself a weekly allowance for expenses. You use what you use, and after that, when money is gone, it’s gone.
  • Try packing lunch and snacks when you go to work, reducing purchased lunches can save you a surprising amount.
  • Use your mobile phone wisely. As James Currah, General Manger of Boost Mobile suggests, “I take full advantage of the free-call periods provided by my mobile service. I also make a quick call to friends and family instead of texting back and forth, which is more expensive.”
  • With petrol prices reaching almost $2.00 a litre, it is valuable to consider whether it is actually worth driving everywhere all the time. Can you use other means of transportation? Catching the train into the city might actually be quicker as well as infinitely cheaper.

Saving can be difficult, however by just looking at your current expenses and a few simple ways in which you can cut back unnecessary costs, it can save you a lot in the long run.

If you are struggling under the weight of debt, perhaps it is time to think about refinancing as an option. Consolidating your debts into one easier monthly repayment can save you the stress and pain of scraping together enough every week to pay living costs.

For more information on how we can help you, contact us now on 1300 138 188.