Currently we are facing an economic downturn. In the final quarter of 2008 there were 1,991 debt agreements signed. According to ITSA this figure is up 37.12% on December 2007. This figure illustrates the increased number of Australians’ who are facing financial difficulty.
Carrying debt in a downturn can be more dangerous than ever. Predominantly people are getting themselves into financial difficulty through the use of credit cards and personal loans. According to Chris Riotto, Managing Director of Australian Lending Centre;
“In a downturn, it is more important than ever to seek debt advice. An increasing number of Australians are having to cope with a reduced income or unemployment, doing this with substantial debts can be particularly difficult, that is why I stress the importance of seeking advice at the earliest possible sign of trouble”.Chris Riotto CEO ALC
A professional can assist you in sorting your financial troubles by analyzing your current situation, setting financial goals, and assisting you in achieving them. In some cases people may only need to cut back on their current expenses whilst others may need to look at debt solution products, either way, the sooner you get professional help the quicker and easier it will be to get your debts under control.
Assess your Debt in the Economic Downturn
Fido is currently advising consumer’s of the following:
“Ignoring debt problems will makes things worse. Interest will probably continue to be charged on top of the debt and any possessions secured against the debt (e.g. your car) may be repossessed and sold. Also, your credit rating is likely to be affected and you might be sued.”Fido
It is often a good idea to question your financial situation, sooner rather than later. If you can answer yes to any of the below questions, it may be time for you to talk to a debt advisor.
- Do your monthly expenditures exceed your monthly income?
- Does your credit card balance feel like it never decreases?
- Are you finding it difficult to save a regular monthly amount?
- Do you need a loan to pay off your debts?
- Have any of your creditors been in contact with you regarding the payment of your debts?
Readjusting your current spending patterns could significantly help to get you out of a poor financial situation. The Australian Lending Centre knows all about debt and have helped many Australians with financial problems. Australian Lending Centre provides a free, confidential service to all customers, call us on 1300 138 188. We offer effective debt management solutions to become debt-free.