Tag: Debt Management

Categories
Debt Consolidation

Consolidating debt can help you save big

consolidation loans

If credit card bills are stacking up and the interest rates are making it impossible to ever think of being clear of debt then it is time to act. Interest rates on credit cards have been stable at a high rate, making a relatively small credit card balance to quickly escalate out of control. If you have a few credit cards and they all have balances due, then it would probably be best to roll them all together and consolidate the debt at a lower rate so that it becomes more manageable. There are a few ways to get all of the debt under one loan so that the payments can be made on the entire debt in one monthly payment but you can also get the added benefit of having lower cost so that you are able to get the whole thing paid off.

Consolidating debt in different ways

Personal loans

Gathering all of the debt into a personal loan is a good option. The interest rate will be lower than the credit card companies’ interest rates so the balance will not continue to grow at such a fast pace. The personal loan route will break the entire loan up into a set repayment term so that at the end of the loan period the entire loan will be paid off so you can start over with a clean slate.

Mortgage refinance

If you have a mortgage already and have equity in your home, a great way of consolidating debt is to combine your credit card debts into your mortgage. All your credit card debts will be consolidated into a lower rate. Since mortgage rates are usually lower than credit card interest rates, you can have all of the debt repaid as you pay off your mortgage.

Credit card consolidation

Taking all of the different credit cards and placing their balances into one credit card with a no interest period is also a great way to stop the growing interest for a certain period for you to get ahold of the debts before it gets farther out of hand. The aim with this route is to have the entire balance paid off before the interest free period is over.

Consolidating debt from many different accounts is the best way to stop or slow the interest rates from compounding the debts until it is too large to handle. There are several ways of handling debt from getting out of hand and it pays to look into the different options in consolidating debt and choosing what works for you.

So speak to a financial specialist about debt consolidation so you can save big while you pay off your debts.

Categories
Debt Management

Dealing with Retirement Debt

Debt Relief

To many of us, retirement is the time when we would just have to sit back, relax, and enjoy the fruits of our hard labour. It is ideal that when retirement age comes, you should just be living comfortably in your retirement house, not thinking of any stress. It is worth thinking about managing debt before going into retirement.

But things could be complicated along the way. Before you know it, you could already have accumulated too much debt in your pre-retirement years. By the time you retire, you could still be servicing some or most of those debts. So how should you deal with debt when you get to your retirement age? Here are some ideas.

Continue reading “Dealing with Retirement Debt”
Categories
Debt Management

How to Avoid a Default

how to avoid a default

It is a mortal sin for every loan borrower to fall into a default. That is because doing so would lead to bigger trouble. If you default on a loan, your loan provider may take various types of action, which might all be disadvantageous to you. First, you may face the burden of litigation. Second, you may be imposed with more penalties. Third, your collateral might be repossessed. And lastly, your credit history would surely be eroded.

Continue reading “How to Avoid a Default”
Categories
Debt Management

Australian Households Struggle Under Mounting Financial Pressures

personal loan

Australian households are feeling the financial strains of the global economic crisis as the Christmas season draws to a near. With oil prices still high, the Australian dollar buying fewer than 70 US Cents, and economies around the world slowing, the trickle down effects are showing.

Living costs are at a record high, grocery prices both on the rise. Christmas often stretches the family finances further, making it even more difficult to make ends meet.

Continue reading “Australian Households Struggle Under Mounting Financial Pressures”
Categories
Debt Management

Government Survey Gives Insight into Australian Debt

Australian Debt

It seems Australians are not entirely money-conscious when it comes to entering into debt, as a recent Federal Government report has found. In this article, we take an insight into Australian Debt.

The latest survey conducted by the Financial Literacy Foundation has divulged details about the general attitudes towards credit and debts amongst the Australian population.

The nationwide survey found, 21% of respondents will get into debt by buying things they cannot afford, and 17% pay only the minimum amount owing on their loans.

Continue reading “Government Survey Gives Insight into Australian Debt”
Categories
Debt Management

Aussie Families Struggle with Debt

Debt Consolidation

One of Australia’s biggest reporting agencies says the global financial downturn is still hurting people, with 1 in 6 Australians struggling to pay off their debt.

Veda Advantage says a fair 20% of those in debt are actually looking for additional credit to help pay off their existing debts. In these tough economic times Australians have really felt it hit their pockets.

The survey conducted by Veda comes at a time when a growing number of economists are starting to think that the worst of the global downturn is coming to an end. However there continues to be a segment of society that is still doing it tough – this could also be associated with the now larger unemployment rate.

Continue reading “Aussie Families Struggle with Debt”
Categories
Debt Management

Australians Credit Habits Change

cash in 1 hour no credit checks

Australians have been shifting from credit cards to debit cards when making purchases showing changing credit habits. The value of purchases and cash advances on credit and charge cards fell to $18.8 billion, 1.5% less in August than July.

However Australians are also expected to increase overall credit card debt as they become more confident about the economic recovery. This is evident as the total EFTPOS purchases and cash withdrawals rose 2.1% in the month of August.

This new trend is a positive movement, however some Australians continue to struggle to repay their debts, and one in five of those say that they are likely to apply for more credit in the upcoming months to Christmas.

Continue reading “Australians Credit Habits Change”
Categories
Debt Management

Home Loan Stress reduced by Stimulus

home loan refinancing

In April 2009 mortgage stress dropped by 2.8% indicating that the recent Government stimulus payments were most likely used towards home loans.

The total number of households struggling with home loan repayments fell to 568,000 compared with a peak of 900,000 in August 2008.

The stimulus payments have had a noteworthy and positive impact for those who are finding it difficult to make payments on their home loans. However the positive outcome is only temporary and by the end of the year, we may see similar circumstances to those prior to the stimulus packages, especially as we see unemployment rates continuing to rise. Another 400,000 homes could be in severe stress if unemployment reaches 7.5% by the end of 2009.

Continue reading “Home Loan Stress reduced by Stimulus”
Categories
Financial Planning

The Cost of Raising a Child is now $1 Million

cost of raising a child

The cost of raising children to 18 has hit the million dollar mark research suggests.  In comparison to the days where children where entertained more simply, parents are now finding themselves forking out for expensive toys, the latest technologies and private lessons for dance, sport, music and schooling.

Considering the average child now stays at home until the age of about 24 the real cost to the Australian parent of raising children is said to be roughly $1,028,093.

Generation Z, (those born from 1995), are the most financially endowed generation of children ever.  Every child has their own set of everything. They are definitely not in the era of shared toys or hand-me-downs.

Continue reading “The Cost of Raising a Child is now href=”https://www.australianlendingcentre.com.au/the-cost-of-raising-a-child-is-now-1-million/#more-413″ class=”more-link” Million”
Categories
Debt Management

Good Debts and bad Debts

debt management tips

As Australians earnings and lifestyle habits are increasing, so are their debts.  In order to manage and decrease these debts, Aussies need to become educated on their debts and which debts to stay away from.

The three most popular debts Australians tend to hold are: personal loans, credit cards and mortgages.  To catergorise these, personal loans and credit cards are considered bad debts as they usually result in nothing of value to show

for having the debts (i.e. there is no investment property at the end of the tunnel).  Additionally, these debts typically have highest interest rates and are used for assets that depreciate, or lose value over time (such as a motor vehicle).

A mortgage on the other hand is considered a good debt to have, as typically the asset will appreciate in value.
Continue reading “Good Debts and bad Debts”
Categories
First Home Buyer

Home Loan Debt Increases Mortgage Stress

refinance home loan

45% of first home buyers are currently in mortgage stress and racking up debt on their credit cards to make home loan repayments. With rates expected to rise again – this obscurity is only going to worsen.

As tens of thousands of young homebuyers use credit cards or other loans to meet their financial responsibilities, they are making paying off a home loan severely stressful because now they have multiple debts with increasing interest to pay off, and their income has remained the same.

Continue reading “Home Loan Debt Increases Mortgage Stress”
Categories
Debt Management

Reduce Your Debt in 2010

debt consolidation

The end of the year is here again, and after a year of financial turmoil, now would be a good time to stop and take some time to reflect on how you spent your money this past year.  December is always a great time of year to create financial goals so you can begin them early in the New Year.  By setting yourself goals they serve as a motivational tool throughout the year to strive toward a better financial future and reducing your debts.

Click on ‘read more’  for some helpful hints to better manage your debts:

Continue reading “Reduce Your Debt in 2010”
Categories
Debt Consolidation

Consolidate Now to Have a Stress Free Christmas

consolidation loans

We know it makes sense to save throughout the year for annual spending events such as the Christmas season; however year after year so many of us continue to blow our budget and then spend the following months trying to pay off credit cards and the accumulated interest.

According to the Australian Bureau of Statistics, last Christmas we spent $18 billion at retailers, including $70 million on stuffed toys, $54 million on dolls, $659 million on video games, $10 million on Christmas tree lighting and $63 million on other Christmas goods.

Preparation is the key to a financially stress-free Christmas. Make a list of everyone you need to buy for and write down a limit for each of them. Once you know your total cost you can calculate what you are going to save over the coming three weeks to be able to afford it. Make sure you take your list shopping with you and stick to your limits.

Continue reading “Consolidate Now to Have a Stress Free Christmas”
Categories
Debt Management

Bad Credit Debt

repair bad credit

Over 1.5 million Australians have notched up black marks on their credit records because of overdue bills and debt.

In particular, hundreds of thousands of Victorians are among those risking finance knock backs for taking too long to pay utility bills or missing loan and credit card repayments. The revelation comes as financial counsellors expect to be swamped with households struggling to pay higher water and power bills this year.

Continue reading “Bad Credit Debt”
Categories
Debt Management Financial Fitness Financial Planning

Cut Costs and Grow Your Savings

how to grow your savings

The world might be slowly coming out of a recession, however, many people are still struggling to make ends meet. This could be largely due to a lot of people being made redundant, and still looking for work or only working part-time due to fewer job opportunities.

If you fall into this or a similar category, and you find that you are struggling to make your repayments, read on for some helpful hints on cutting household costs.

Cut Costs – Build Savings

Phone Bills

An increasingly popular way to make phone calls nowadays is by using VoIP (Voice over Internet Protocol). It’s a way of making and receiving calls over the Internet and it can work out to be much cheaper than using a traditional Telco for your phone. For more information, take a look at Skype.

Bank fees

Making a phone call to your bank every six months to see if they can do anything to help you cut your bank fees is very worthwhile. Use the call as an opportunity to check that your money is in an account that generates the highest interest possible. Also check to see if your bank has a fee-free option.

Energy

We have heard its good for the environment, but don’t forget that by turning off electrical goods at the power point, or even your gas system when going on holidays, are good ways to cut down on utility bills. Also, look into what time is best to do a load of washing, or turn on the dishwasher, as it is on-peak and off-peak times throughout the day – this means the electricity to run your electric goods are charged at different rates depending on what time of day it is.

Food

Spend more time eating at home, rather than going out for meals, and take your lunch to work instead of purchasing food and coffee on a regular basis.

Debt Consolidation

Debt consolidation or ‘consolidation loans’ are perfect for those who need credit card consolidation, personal loan consolidation and even home loan consolidation, and they can drastically reduce the amount of interest you pay to service your debt.

Australian Lending Centre can offer you a range of debt consolidation options so that you can combine all your monthly outgoings into one lower affordable monthly payment.

Categories
Debt Management Credit Card Consolidation Financial Fitness

Don’t Carry Debt in an Economic Downturn

economic downturn
economic downturn

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.