Categories
Debt Management

Poor Habits that Lead to Debt

There are a number of poor habits that lead to debt. Have you ever wondered why some people are deeply buried in credit card debt and debt in general while others have clean credit records, despite being on the same economic level? Wealthy and poor people exist side by side and sometimes even the same paycheque and personal situations.

Of course, some people have certain advantages over the rest, especially those who have been born with a silver spoon, or those with better opportunities because of their status and connections. There are also individuals who weather financial storms despite their difficult financial situations an emerged successful because of excellent financial habits. But underlying issues that lead you into deep waster start with poor habits that lead to debt.

What are the poor habits that lead to debt?

Here are habits that can be responsible for huge credit card debt, regardless of the amount of your paycheque or personal situations.

Not using your time wisely

Do you realize the time value of money and its impact on your finances? Procrastination, staying idly and not making full use of your 24/7 body clock deprives you of huge opportunities to earn money. You don’t have to work round the clock. In fact, you can make your assets work for you. It’s not just the money-but your skills and creativity can be put to good use.

The Pareto principle states that the thing you do with 20% of your time in a day produces the biggest chunk of your wealth. While it may not apply in all situations, particularly if you are working in a 9 to 5 job, this theory could encourage you to maximize the use of your time.

For example, if you have an online business, it is important to identify your biggest customers and to devote your time in engaging them; and the people with the same demographics. Full-time employees can set a certain period of time in a day to evaluate their productivity and to evaluate their recent knowledge and skills that they can utilize for self-improvement. With less income, you may be tempted to use your credit card to meet your monthly debt repayments and personal needs.

Taking too much that you can handle

While many people thrive with multi-tasking, it can actually lower concentration and the quality of work. Less work done could mean less income. Instead of doing this, you can set a schedule for a specific task; complete it within your allotted period and proceed to the next task.

Let us say you are engaged in small business and you have been doing the books, management and overseeing the productions and marketing. If you don’t have a planner or an app that would remind you every now and then, you may find it difficult to keep up with the demands of your business. You can also hire people to do the work for you. While it may denote additional cost because you have to pay wages, consider it as additional working capital which could yield greater returns in the long run.

The same principle applies to debt; you may think that your income can shoulder the monthly repayments for your credit card debts and other existing loans. But, if your debt takes up more than 30% of your income, and you have no emergency savings fund; it may be difficult to keep up with the payments on time when accidents and other similar situations occur. And more, people who have been handling various types of debt may default on payments simply because there are multiple debts that they need to pay in a month.

Complicated payments may create poor habits that lead to debt

With so many due dates to consider, how can you possibly remember each of them and the interest rates as well as penalty charge they represent?

It is important to choose the right financing opportunity that could help you settle your dilemma on finances. Instead of using your credit cards at the same time, consider other financing options that could help you save more money in the process.

Choosing the safe side

There is nothing wrong with staying in your comfort zone. In fact, most people thrive in a place where they are most comfortable. However, there are times that you need to take a leap of faith to pursue a passion or a new business endeavour that could open windows of opportunities for growth.  It doesn’t have to be a drastic change. Sometimes, a simple adjustment is all it takes to open a new door for improvement, higher pay and a better lifestyle. A sound budgeting plan may be the key to helping you manage your expenses.

Credit card warning signs

Let’s say that you have been using your credit cards to make daily purchases because it is convenient for you and you can keep records of your spending. But, charging your daily expense on your future income may not be a very smart move because in the end, you will be paying interest on an item that you can just pay with cash. This year, it may be time to start bringing your wallet and coin purse. Bring out those loose change and you may be able to save more money shopping.

On another note, those who have been paying their bills on a cash basis can opt for automated payments. There are safety measures that you can discuss with your credit provider to ensure that all your payment transactions are safe.

Automated payments

If your habits put you in financial troubles, it may be time to change them. You are responsible for your financial success. Desire it and set a good plan of action; simply keep moving until your credit card debt and other loans are fully paid and you achieved the income level you desire.

Categories
Short Term Loans

5 Benefits Of Short Term Loans

Taking a loan isn’t proof that you aren’t administrating your finances well or that you aren’t earning enough money to support your family. A loan is a great method that offers you a way out of a problem! In this article, we discuss the benefits of short term loans.

A short-term loan solves the issue immediately and without all the fuss that comes with larger loans. If you need the money to pay for medical expenses, house reparations or an unplanned trip visit to your family, that’s what short term loans are all about!

5 benefits of getting short term loans

They are manageable!

You can take a $500 loan and that’s it! Small loans were made to fix urgent matters, so take advantage of them! Short term loans won’t keep you up at night thinking how you’re going to manage interest rates and any other additional fees.

Unlike large loans that pose problems and can disrupt your finances, a small loan will help you out. Not being able to make payments on time and worrying about a bad credit score won’t be an issue when you deal with such short-term loans.

Online application

This is one of the biggest benefits of short-term loans. You can fill out a form on the Internet and wait for the money. Skip the road to the bank office and staying in line for hours. This type of loan comes with an online application that will only take you a few minutes of your time while doing it in the comfort of your own home.

Access the funding fast

Skipping the fuss that comes with larger loans also means getting the money faster! This is actually the exact purpose of short-term loans. They have been created for urgent matters that can’t be planned ahead. In just a couple of hours, you can receive the money and sort out your financial difficulties! It’s that simple!

You can customise your payment plan

You can borrow only the money you need, considering that a short-term loan doesn’t come with a fixed sum of money. If you think you’ll be able to pay it back in 3 months, settle a 3-month payment plan. If a 5-month plan sounds better, go with that option. A customisable payment plan allows you to get back on your feet without worrying that you won’t be able to repay the sum in the given period. You choose what’s best for you.

Dealing with a short term loan is easier

Taking a loan isn’t always a burden, especially if you borrow a small amount. Repaying a small loan in a couple of months can be entirely possible for your budget. So, you’ll be able to get out of your financial difficulty, and you won’t have any debts.

Short term loans are a great option to quickly get you back on track- that is of course if you don’t have significant debt. Of course with any loan it is important to take precaution. If you have any questions about short terms loans, read 5 questions to ask when applying for short term loans.

Categories
News Debt Consolidation Debt Management Financial Fitness Financial Planning

Fast Loans and the Fastest Ways to Repay Them

When you need cold cash now, fast loans can be your best bet. Fast loans are quick and easy to obtain. Lenders can process loan applications within 24 hours meaning you can have your funds in your account overnight.

Whilst fast loans may be your saving grace, how can you repay your loan back quickly?

Here are some tips for paying back your loan faster

1. Pay more

If you can afford it, put in larger payments each month to pay off the principal more quickly. For example, $2500 fast loan with 6.8 % interest with a 10-year payback period would cost $28.8 a month. Making $70 payment on a monthly basis instead of $28.8 enables you to repay the fast loan in just over 36 months. By paying the principal more quickly, you will also pay for less on interest.

2. Make additional payments

The less you owe, the less interest that you will be charged. If you are able to budget effectively; you may be able to make additional payments to your fast loan.

3. Create a plan to pare your fast loans

Know exactly when your fast loans will end. Next, create a goal to pay it off within a specific period of time, commit to it and pay it according to the repayment plan. Make it a routine to pay it off monthly. If you’re facing difficulty in coming up with the monthly payments, create a budget and cut back on your expenses. This way, you can lift your debt obligations off your shoulder faster than ever.

4. Automate savings

Automatically transferring money into alternative accounts is a great way of saving that extra cash. Rather than spending money on trivial things such as movie tickets, or that unhealthy meal; automatic payments can help you set aside that extra cash to pay off your debt.  Make sure that you will only use that account for paying back your fast loans and other types of debt. This will require sacrifice in certain areas, but it will ensure that you are one step closer towards financial freedom.

With the growing wave of cryptocurrencies such as Bitcoin and Litecoin; some experts have suggested investing your extra savings into crypto. This is an extremely volatile and unpredictable form of investment that we do not recommend. Many experts compare cryptocurrency as a form of gambling. Whilst, it may seem as though there are immediate increases in profits; you may lose all your hard-earned savings in a second.

Hide your credit card in a safe place

Don’t be a victim of credit card theft. With easy access to your credit cards via pay pass; strangers who have access to a lost credit card can easily tap on purchases less than $100. Keep your credit card securely in your wallet. If you lend your card to friends or family, make sure you keep track of any transactions online.

Keep your phone in your pocket. 

The same rule applies to your mobile phone. With the rise of Apple Pay, you can purchase your transactions through your mobile phone. Make sure that you keep your phone locked with a passcode so that strangers cannot make any payments without facial recognition or a passcode.

5. Close some credit cards

Having them on your wallet may tempt you to spend more. Leave only the low-interest credit cards for your urgent needs.

6. Consolidate your debts

One of the best ways of ensuring that you continue to pay off your loan quickly is to consolidate your debts into one neat and tidy bundle. This will also protect you against the rising interest rates across different loans. This will benefit you in the long run; whilst making it easier to manage your debts.

7. Be proactive by increasing your income

Earning cash while dealing with your debts is a good way to stay proactive about overcoming debts. You don’t only generate wealth to pay for your loans; you also build your nest egg. If you can put away $100 every month out of your income, that would be $1,200 annual savings.

At the Australian Lending Centre, we can help you avail of our easy-to-pay fast loans and our debt management plans. We can help you strengthen your ability to repay your loans and live a financially secure life. It takes discipline and planning, but you can surely do it.

Contact Australian Lending Centre to get back on track. 

Categories
Personal Loans

Criteria for Incurring a Personal loan

In order to achieve your debt management goal, it is important to consider the basic rules to adhere to when obtaining a personal loan.

Can I Pay for the Personal Loan with Cash?

When you incur a new debt one of the first things you need to keep in mind is the fact that you eventually need to repay it. Consider your income and the amount of money you need to cover your monthly expenses. Check if there is any additional monthly debt. If there is none, it may be useful to look for another loan alternatives-such as a home equity loan, or debt consolidation loan. These options can help you accelerate the reduction of your inefficient debts, reduce your total interest payments and at the same time, give you enough money to boost your income.

For example, home equity loans can increase the equity you have in your home. If you intend to borrow later for investment purposes, you can use the equity to secure your loan. Debt consolidation loans can also reduce the overall debts plus interest and fees. If you roll all your credit card debts, personal loans and other existing debts into one, you will have more control over your financial obligations. You can also save money on the process, and you can enjoy the convenience of paying only one lender each month, instead of multiple lenders at various payment dates.

Should I Recycle my Debt?

Debt recycling is replacing inefficient debt with a debt that can efficiently boost your income and reduce overall debts.  Unlike debt consolidation, it is focused more on wealth accumulation than debt repayment. Take a careful analysis of your financial situation. Do you want to accumulate wealth over the long-term by using surplus cashflow to lower your inefficient debts? If so, it may be time to replace your debts with efficient debt such as an investment loan or business loan.

You can put your money in your investment portfolio and take advantage of its tax-deductible interests. While personal loans are not tax-deductible, the interest expenses on business loans have tax benefits. But, be careful when managing your money. It is true that you can use the money to create wealth by engaging into business, adding capital to an existing endeavour or putting money into investment funds—but you must be prepared for the risks. Eventually, you need to repay the loan and if you fail to do so, you may have to pay higher interests in the process.

Is it economical?

While a personal loan can play an important role in helping you meet your short-term and long-term needs, it must be managed and structured effectively to minimize the overall cost of the loan. For example, you may have to pay a higher interest for a personal loan payable within a year, than one payable within 3 months. Compare interests with other lenders, offering similar loan products and check which one can give you the best rates. Include the overall cost of the loan, not just the APR in calculating its cost.

Ask about the possibility of increasing the size of regular loan repayments on a regular basis.  This will reduce the interest charged and the principal on the loan. But, you may have to pay for the early repayment penalty. so, it is important to inquire about this matter before you sign up for the loan.

Understand the cost of debt

The lowest interest you will pay on a loan is probably 30% considering the time it takes you to pay the loan especially when you have bad credit and unstable cash flow. Even home loans are not cheaper either, more so considering the other charges associated with the loan. Worst, when you default on payment and interests accumulate overtime. It is also clear that the more you miss payments, the longer the time it takes you to repay the loan and the more the interest and other fees you pay.

It is therefore in your best interest to look for a personal loan that offers the lowest possible minimum repayment rate and charges for you. But, if you have a bad credit situation and you cannot submit financial documents like income tax return and payslip that banks and mainstream lenders require, you may have to turn to ‘cheap to service loans’ that are usually the most expensive.

It is important to look for a specialised non-bank lender such as Australian Lending Centre that provides low-cost loans to people who are usually turned down by banks due to poor credit and absence of documentary requirements. Resorting to cheap service loans is not worth it, considering the financial cost of credit you can incur in the long run.

Categories
Debt Consolidation

Tips on How to Qualify for a Debt Consolidation Loan

If your credit score does not meet the minimum requirement of the bank, and you don’t have a regular income and you are spending more than 40% of your income on debt repayments, you may not qualify for a debt consolidation loan. Banks often reject applications of those with unstable income and negative credit entries on their credit report, unless they have sufficient security for the loan. Learn how to qualify for a debt consolidation loans when you have bad credit.

Check your credit history:

If you want to get a cheaper consolidation loan, you need to prepare your credit file. Though bad credit holders can still obtain affordable loans, it is advisable to know what’s inside your credit file. For all you know, you are just having a bad credit score because of wrong and inaccurate entries. It will also give you time to explain to your potential lender why and how you ended up with that score.

Many lenders understand that some life events can hold you back financially. Use the information in your credit file to explain your circumstances and to convince your lender that you are still capable of making payments despite certain financial setbacks in the past. So, grab that file and use it to have a better negotiation with your lenders. Get the loan product and loan arrangement that could help you get away debt-free after the repayment term.

You want to get rid of debts:

If you wait for a longer period to deal with your debts, it may get out of hand. Debt consolidation is advisable for those who are awaiting a crisis if they don’t eliminate the debts. It is true that bad credit is a huge issue in taking the loan. But, if you choose the right lender you can get access to the much-needed consolidation loan without making your credit score an issue.

Let’s say you have previous debts under five different lenders. Now instead of paying monthly instalments to each of them, you will get a consolidation loan pay the instalments to that new lender. The main purpose of taking the loan is to save money by eliminating all those debts with a higher interest rate in exchange for a bad credit debt consolidation loan with a lower interest rate.

Present valuable collateral:

Do you have a new car, boat, home or any pricey asset that the lender can sell or liquidate in the vent you default on payments? If you want quick approval loans, secure your consolidation loan with a pricey asset. Lenders no longer bother to look at your credit score when you secure the loan. They may also give you affordable interest rates which are comparable to the rates offered by banks. In fact, you may get around 14% APR or lower with good security.

You have a good repayment plan in mind:

While this is not a requirement per se, it is advisable to have a plan before you apply for a loan.

Some debt consolidation companies offer their services to borrowers who are struggling with debts. But, you can do it yourself. In fact, if you have a sound debt repayment plan in mind, you simply need to apply for a loan to consolidate your other smaller loans, and you can repay it within the allotted time frame.

Debt consolidation is only a suitable option for those who want to end up with more cash at hand at the end of the month, and with lesser debts to pay off. It is because there are many people who tried to consolidate their loans but ended up with more debts because they have chosen a poor debt structure and they don’t have a sound debt repayment plan in mind.

So, here are some questions to ask yourself before planning to consolidate your loans:

  1. Do I have the discipline to avoid using my existing credit cards the moment I paid them off with my consolidation loan?
  2. Can I stick with my debt repayment plan so that I will not end up with more debts in the process?
  3. What will I do to increase my income?

A loan is a loan-regardless of its type. That means you have to pay it back. Make sure that you use the proceeds of the consolidation loans wisely, not only to repay all your high interest and smaller debts, but to improve your financial life as well.

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News

Factors to Consider before Signing a Debt Agreement

A debt agreement is a contract that is legally binding between you and the parties concerned – the creditor, debt collection company or third persons involved. Consequently, each party can legally enforce the terms of the agreement against you if you don’t comply with your contract. Learn about the things to keep in mind before signing a contract that can make or break your finances. Always take serious consideration before signing a debt agreement.

The debt agreement process

When entering into a debt settlement, you have to understand that the creditor expects you to be ready to pay your debts. So, prepare to negotiate a certain sum of money or asset to pay for a percentage of your combined debt. Make sure that you can afford to pay it over a limited period of time. In debt settlement, you don’t pay your creditors directly. Instead, you make repayments to the administrator of your debt agreement.

Negotiation takes a little bit of patience and persistence because creditors also know that once they agree to a particular amount, they cannot recover the full amount of debt anymore. Knowing that they cannot get back the full amount you owe, they may give you a hard time during the negotiation process.

Legalities of your debt agreement

A valid contract is an agreement where all the parties agree to it. Meaning, there is mutual consent between you and your creditor. It must state the object of the contract—or the consideration which is typically a sum of money, or asset paid by the debtor to the creditor. The agreement must not allow you to do something illegal in return of debt forgiveness or reduction of penalties. It is also important to be mentally capacitated to enter into an agreement. You must be mentally sound and at least 18 years old to ensure that you are competent enough to enter into a binding agreement.

negotiations

It is important to note that the object of the contract or the “consideration” must be something to be negotiated upon. An agreement is impartial. It gives you the perfect opportunity to discuss and compromise on the terms of the debt agreement before reaching a final contract that is acceptable to you and your creditor. But, take note that there are non-negotiable contracts, but you can still look for ways to ensure that the terms will be satisfactory not only to your creditor, but to you as well.

The agreement must not contain provisions that disagree with the contract laws in your state. You can talk to an attorney to verify the terms of your contract before signing it. Or, you can educate yourself and check whether there are illegal terms in the contract that will jeopardize not only your finances but your reputation as well.

Negotiation points

Write down your objectives for entering into an agreement. What is your desired outcome? Do you want to pay your debts in full while paying for it at a lower rate? Or, do you intend to let go of your assets to finally eliminate your debt? Before you negotiate a contract, have a specific outcome in mind. For example, if you want to extend the loan term, then you should know exactly how long you would like the loan extension to be.

Before beginning negotiations, you should know where you stand. Are you financially capacitated to respect the terms of the contract? Take note of your financial standing and the surrounding circumstances that may prevent you from abiding by your agreement. It is also important to determine your bottom line. Know the highest repayment amount you can make and the lowest one that you think the creditor can accept.

check-options

Check other options

Do you think it’s time to give up and take up bankruptcy instead? If you have no income, and you’re not in any way capable of making even the minimum repayments because of unemployment, and you can’t meet your daily needs, maybe bankruptcy is a better idea. But, it will definitely ruin your credit score, take away your assets—and probably leave you on the streets. The only upside is that your debts will be eliminated.

If you think you can still get a job, improve your business or get any additional source of money to keep up with a minimum payment each month, debt agreement is a better idea.

It is important to note that debt agreement does not refer to debt consolidation. When you consolidate loans you simply roll your existing debts to a new loan; with lesser monthly repayment, lower interest rates and fees and in one easy payment method each month. While debt consolidation companies sometimes negotiate with creditors to lower the repayment each month, there are companies that simply pay off all the loans and charges a new rate to their customers.

Is debt agreement the right solution to your financial situation right now? Talk to us today!

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News

Variable-Based Tips On How To Manage Your Debt

If you’re planning to get a new loan, but you’re not sure if you can repay it on time, here are tips on how to effectively manage your debt, based on 2 financial variables.

Financial success does not depend on the amount of money you have but on specific strategies that apply to your situation. Whether you will use the funds for personal or business purposes-increasing your cash flow is still vital to a successful debt management plan. Debts may increase or decreases depending on your strategy, in the same way as your spending habits influence your cash flow.

You cannot just say that you are going to pay back your debts without some detailed strategy.

The first thing that you can do to manage your debt is to improve the variables that eventually determine your financial capacity to repay. Improving these 3 variables about your debts you will increase cash flow and pay off your debts and improve your finances.

Earnings

How much is your after-tax net income? What about your after-debt repayment income? When computing your free-money, look into your debt to income ratio first.

Your debt income ratio refers to a certain percentage of your monthly gross income that you use to pay debts. It has two classifications: The front-end ratio, or the percentage of income you use to pay for your mortgage, rent, property taxes and other similar housing costs. Second, the back-end ratio, which is the percentage of your income that you pay for all your personal loan and credit card payments and other recurring debt payments, including those covered by the front-end ratio. As long as it is recurring debt, it is still covered by the back-end ratio.

To calculate your debt-to-income ratio, add up all your monthly debt payments. Divide that number by your current monthly income. Get the percentage by multiplying the result by 100. Let’s say if you spend $1000 each month on debt and have a monthly income of $4,000, your debt to income ratio would be 25%.

Increasing your income and at the same time paying your debts can help you lower your debt to income ratio, giving you higher free cash for your other needs. You can also increase your debt payment to quickly pay off your debts until you achieve a zero-debt ratio.

Financial satisfaction

Are you satisfied with your present financial situation? Or, do you find it difficult to meet your monthly payments on your bills?

How much money is enough and well-enough for you? What might be enough to pay all your debts may not be well enough to sustain your lifestyle, pay for your emergency and daily needs and invest for the future. Or, it could be sufficient for you as long as you plan your budget wisely.  Decide how much might be enough for you and your family if you have one to know what number you should definitely try to reach.

Discover more tips on how to manage your debt by talking to our in-house loan experts at Australian Lending Centre today!

Categories
Debt Management

The Wrong Ways to Pay Off Your Debt

Being in debt can be stressful, no one denies that. And the pressure can place you in a range of challenging positions, forcing you to cave in and make the wrong financial decisions. Embracing the right ways to pay off your debt is more than mandatory.

But how do you know which are those? Well, you must get acquainted with the practices that should be avoided, and this is what we’re going to discuss in today’s article. Keep on reading to discover the wrong ways to pay off your debt.

Consolidate with a high-interest loan

Debt consolidation makes sense when the financing solution provided by the lender is actually favourable. If the loan terms are convenient for your financial situation, you should go for it. Nonetheless, choosing debt consolidation for the wrong reason and failing to analyse the implications of the term will do you more harm than good.

In the case in which the only loan you can obtain has an interest rate that is higher than your credit card debt, you should leave it aside.

At first, you may believe that your monthly repayments appear lower with debt settlement. Nonetheless, that is only because the loan has an extended timeframe. If you were to calculate the interest you’d end up paying during the life span of the loan, you might come to realise that such a solution is not the best. So, this is definitely one of the wrong ways to pay off your debt.

Misusing your home equity loan

The second on our list of one of the worst ways to pay off your debt: choosing a home equity loan. Even though you may assume that this could be the answer to all your problems, this is not always the case. Of course, there are many situations in which this option actually works. As always, everything depends on each person’s financial conditions.

However, if you’re struggling with high-interest credit card debt, you should pinpoint the root of the problem. For example, your debt situation might be a result of reckless spending and poor money management skills. If you don’t aim at solving the problem from its root, you are prone to end up in this exact scenario in a year or two. So, it goes without saying that a home equity loan won’t work as long as you don’t fix the underlying issue. In the case in which the loan ends up being unaffordable, you might lose your home as well.

Choosing the support of a debt settlement company

Accepting the guidance of a debt settlement company is, without a doubt, one of the most unfavourable ways to pay off your debt. As it is expected, these kinds of businesses advertise as being the solution to everybody’s money related problems. Nonetheless, after you manage to settle your debts, by paying significantly less than you owed, your credit rating is terrible, and you’re back where you started. Not to mention that we’re talking about a lengthy process. Even if your attempt is successful, you’ll have to work on rebuilding your credit score for years.

So, try to stay away from the methods mentioned above. There are other ways to pay off your debt without affecting your credit score in the process. Speak with a financial expert like Australian Lending Centre who offers free consultations on paying off debts and managing people’s finances.Save

Categories
Debt Consolidation

When Is a Debt Consolidation Loan Feasible?

Debt consolidation loans are meant to pack multiple small loans into one that is more manageable. It is one of the most common forms of debt relief. However, not many people seem to know when a debt consolidation loan is feasible.

There are some things you must take into consideration when you’re tempted to amass your loans into one.

So when is a debt consolidation loan feasible?

  1. When you pay extremely high-interest rates

Credit cards, usually, have the highest interest rates. When you need to pay a lot of interest, the debt is growing at an alarming pace, faster than you can repay it. Debt consolidation loans, on the other hand, might offer you better interest rates altogether. If you pay more than you can afford in interest, you should definitely consider a consolidation loan.

  1. An endless number of bills

Getting tons of bills can make it so easy to forget to pay a certain debt. You simply cannot keep track of everything. A consolidation loan is feasible if you’re in such a situation since you’ll be receiving just one bill until you’ve dissolved your debt. This will automatically lead to better management of your time and money.

  1. When the loan is unsecured

If a loan is “unsecured,” it means that it is not attached to any of your assets, like your house and car. Secured ones are certainly not a good idea because if you fail to repay the debt, you could get homeless or devoid of the asset you’ve secured the loan on. Try to stay away from secured loans at all times. It’s just better to find another way to pay your debt without risking your house as collateral.

  1. When you’re willing to repay for a longer time

Debt consolidation loans allow you to pay less than you paid on your previous debts, but that means that the repayment is going to take longer. Are you willing to do that? This can be a hassle for some people who want to get it over with as fast as possible. Still, if you have no problem with that, then you should consider taking such a loan.

  1. When you don’t end up paying more interest

Yes, it is possible to end up paying more interest on a consolidation debt than you would’ve paid for all the other separate loans. Surely, that will impact your credit score if you fail to pay. And before you know it, your credit rating will be so damaged that you will find it even harder to get another loan in the future.

Debt consolidation loans can truly be a great help, but you must know when you need them. Moreover, there are many other aspects that come into play, like the ones mentioned above. So, review your situation thoroughly before you take such a debt consolidation loan because it can have disastrous consequences if you go for it lightheartedly.

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Categories
Debt Management

Tips for Erasing Debt

Feeling discouraged and overwhelmed by debt is a feeling that many Australians experience. And things don’t get by any chance easier when you want to make ends meet, and your income is limited. Unfortunately, there’s always the temptation of agreeing to high-interest loans, assuming that it’s a temporary solution. But, in the long term, making rushed financial decisions will jeopardise your chances of accumulating savings. So, if your question is how to erase debt, keep on reading.

Prioritise your payment plan

Considering that you have limited income, you should start by prioritising your expenses. Bear in mind that necessities such as utilities, unpaid federal taxes, student loans and others should be in your focus. As for credit card debt, this is a common concern for many Aussies as well.

First of all, target the card that has the highest interest, and focus on that if your debt enables you. But, most importantly, you should start budgeting and distinguishing between urgent debt and the debt that can wait.

Consider Debt Negotiation

Our next tip on how to erase debt is to embrace debt negotiation. Of course, you know how much you owe your creditors. But it wouldn’t kill you to try discussing with them about lowering the interest rate. Many times, lenders are more than willing to negotiate; it’s up to you to try.

Factor in debt consolidation

Taking on debt consolidation can be the right strategy if you have multiple credit cards and loan bills that confuse you. Instead of having numerous bills and payments on your mind, you could pay a single, tidy bill.

The most considerable advantage to debt consolidation is that, if you have fewer creditors to pay, you’ll manage to make repayments in time. That is crucial for improving your credit score. Plus, it might simplify your finances, on the whole.

There are cases in which lenders or brokers provide you with attractive interest rates. Nonetheless, do bear in mind that if you’re paying less than the total amount of bills combined, you might have exceeded the repayment timeframe. Make sure you don’t agree to that unless it’s what you want.

So, debt consolidation can be the answer to how to erase debt.

Avoid taking on other loans

Did it ever occur to you that the reason why you’re in debt is that you depend on credit cards on a regular basis? So, if you want to learn how to erase debt, it makes sense to analyse your spending habits and see where most of your finances go. If you reckon that your weakness is utilising credit cards on a whim, you should acknowledge the downsides of such cards and try to address the problem.

We hope that you found our tips on how to erase debt handy. Bear in mind that after you have managed to become debt-free, you should be mindful so that this doesn’t change overnight. One thing is for sure: debt can be managed even with limited income, it is up to you to embrace the right tactics.Save

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Personal Loans

Does Getting a Personal Loan Affect Your Credit Score?

Personal loans can have a negative impact on your credit score if you fail to repay them on time. Just like it is the case with types of loans, if you’re failing to make monthly repayments, then your credit score deteriorates. But does getting a personal loan affect your credit score?

Problems can start to appear when you’re trying to get a home loan and financial institutions dismiss your application. On the other hand, taking personal loans can actually help your credit score if you’ve never applied for a loan, or dealt with banks up until now. An absent credit score doesn’t mean you have a good credit score. It means that financial institution will be sceptical about you, due to not having any type of information regarding your income or taxes.

Let’s take a look at the impact that personal loans can have on your credit score. Also, let’s see why and how we can address this situation.

How Can Personal Loans Improve Your Credit Score?

  • Just by taking a loan, you start to build up your credit score
  • Paying back the loan proves that you are a worthy and valuable borrower
  • Repaying the loan even faster than the due time shows that your finances are doing great
  • Never skipping payments is a sign that you haven’t taken more than you can afford
  • An active credit history will get you extra points on your credit score
  • Maintaining your account open, even after you’ve settled your debt shows you are a loyal client
  • Personal loans registered on your name reveal that you are mature and Thus, you’ll receive another couple of points on your credit score.
  • The fact that you’ve taken and repaid a personal debt makes you eligible for a home loan, or car loan if the need arises.

How Can Personal Loans Lower Your Credit Score?

  • Failing to make regular payments for your loan will bring you a bad credit score
  • Co-signing on someone else’s loan can affect your credit score as well, for the better or for the worse, depending on whether that loan was paid on time or not
  • Payment defaults and overdue bills do not reflect well on your credit score
  • Refused personal application loans will make it harder for you to get a loan in the future
  • Taking personal loans without first calculating how much you afford to pay each month will not benefit you in the long run
  • Having no sort of credit history also means having a zero credit score, which again, is not good
  • Paying a personal loan 60 days after the due time will lower your credit score greatly
  • Increasing the usage of your personal loan by more than 30% is not recommended.

Personal loans can affect your credit score for the better or lower it up to the point where we’re no longer eligible to apply for a home loan with fixed interest rates or different features that we may like. Keeping your credit score balanced can be done so always try to make regular payments.

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Debt Consolidation

Questions You’ve Had about Consolidating Debt But Haven’t Asked

Debt consolidation is regarded with kind eyes by many Aussies and often described as a solution to all of your problems. Just like the name says, debt consolidation refers to putting all of your debts together, in order to keep track of your payments easier. But perhaps you have questions about consolidating debt. Maybe you are unsure how it works and confused about how you can save money by choosing this finance option.

In this article, we reveal all!

Is Debt Consolidation the Right Choice for You?

If you’re making multiple payments per month, then you know by now that each comes with different interest rates and fees. In this case, yes, debt consolidation is the right call. Also, by consolidating your loans, you will always have to make one monthly payment, instead of sending money to a number of lenders.

Here are the top 6 questions about consolidating debt:

  1. Can I combine my home loan with my personal loan?

Consolidation allows you to combine all of your loans into a single one, regardless of their type. Keeping track of your home loan, car loan, personal loan and so on can be tiring. This is a time-saving solution.

  1. How will consolidation benefit my expenses?

Some loans have bigger interest rates than others. By combining them, you will have a fixed rate that you’ll pay monthly. This way, you’ll know exactly the amount you’ll have to repay, without also having to deal with various taxes and fees that accompany each loan.

  1. Am I eligible for consolidation?

Everybody can choose to consolidate their debt. Still, check with your lender and see if your home loan allows you this option. If not, try to change the features or simply look into a refinancing that incorporates debt consolidation.

  1. Is it better to pay my car loan in 30 years?

When you combine all your loans, you can choose to prolong the payments, in order to fit your home loan. Unfortunately, even though your rates will be lowered considerably, the interest fees will expand due to dividing the car loan for example, over a period of 30 years. You can adjust the debt consolidation to fit your needs.

  1. Should I consolidate if I have bad credit?

This is actually the main reason why people consolidate their debts. Debt consolidation tells lenders that you have placed your affairs in order and are serious about improving your financial situation. Also, it will enhance your credit score.

  1. How can the equity in my home help?

Through debt consolidation, the equity in your home can reduce significantly the interest rates you’re paying each month. Being a secured line of credit, a home equity loan will use the equity in your home as collateral, which can lead to a fixed and smaller interest rate.

If you’re having financial problems and can’t afford to pay back all your loans, expanding the loans over a longer period of time will help you get back on your feet by paying less each month. So, talk to your lender about this option.

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Debt Consolidation

Are You Falling for these Debt Consolidation Traps?

Do you feel burdened by several credit card debts and other outstanding loans and you think debt consolidation could provide some serious relief? Debt consolidation is a new loan that allows you to pay off your multiple balances in one monthly payment. It doesn’t erase all your debts but simply makes it easier for you to repay. So, if you want to have a clean slate for keeps, make sure that you don’t fall into these debt consolidation traps:

Ignoring the cause of your debt problems.

Debt consolidation helps people manage the repercussions of bad debts. But it is just a temporary solution to your problem. Addressing the root cause of your debts, such as your lifestyle, money-management issues and other related things can help you analyze why you sunk in debt and how you can get out of it.

It is important to ask yourself, “What got me into a pile of debt?” Remember that it takes a while before debts become unmanageable. It is almost impossible to come up with a quick solution to internal debt issues when you fail to see where and how it started.

Debts did not grow overnight so unless you come up with a concrete idea with what got you into a financial mess, the same situation is likely to repeat itself.

Australian Lending Centre has in-house professionals to help you in retracing your financial actions. We can help you with our debt management plan and debt consolidation loans to deal with your present debts as we help you identify your spending habits.

Perhaps you were taking high-interest loans without knowing it or you are not paying your loans right. In other cases, the problem could be as simple as forgetting the due dates or the existence of debts itself.

Not making a proactive effort in searching for the best consolidation loan.

Here are some factors that you need to consider when choosing a loan consolidation program:

    • all of your outstanding debts
    • interest rates
    • lenders’ willingness to negotiate a lower rate
    • consolidation options

Consolidating debts has its own implications. Some lenders offer rates and fees that creep up over time. Others will charge you hefty fees that may put your assets in line in exchange of deceiving interest rates.

Australian Lending Centre gives you different options to pay for your debts. If you want to pay a lump sum to settle all your debts for less than what you actually owe, we can help you do that. You can also talk to us about our debt management program and see whether or not it can work for you. A debt management plan usually involves making an agreement with your creditors to consolidate the full amount of your loans. The negotiation is successful if you get lower interest rates or longer repayment period.

Thinking that you are finally out of debt.

Debt consolidation is still a loan. While you no longer have to deal with angry collection calls and you are not pestered with high-interest credit card bills, you cannot go back to your old habits. One of the big debt consolidation traps is forgetting he your debt problems were caused in the first place. Avoid falling back to maxing out your credit cards once again. Don’t give in to the temptation of charging all of your credit cards with zero balances once again, especially if there is no urgent need to do so.

Bear in mind that you still have a substantial amount of outstanding debt. So, if you cannot close most of your credit cards leave them at home and put only your low-charging credit cards in your wallet for emergencies.

Call us today!

Categories
Debt Consolidation

Top Questions to Ask Yourself before Consolidating Your Debt

Debt consolidation is the process that gathers the total amount of your outstanding debts into one single loan. As with any other financial procedures, it may or may not work for you. The key is to know what to look at to ensure that you’ve made the right choice for your personal background. Here are some top questions you should ask before consolidating debt.

  • Can you afford to pay the debt?

First and foremost, you need to evaluate the immediate effects linked to debt consolidation. What impact will it have on your financial situation? Will it help you to manage your finances better or make you lose absolute control of them?

  • What is the primary purpose of the loan?

The first thing you should do is to distinguish between what you want and what you need. Only because you want something really badly, this doesn’t mean you should immediately borrow money for that, unless it is actually relevant. Also, be mindful especially if your loan involves a third party such as a family member or friend in the position of a guarantor.

For this kind of loans, you are held responsible in case of non-payment or defaults. What is more, if you’re considering taking a loan in order to pay your utility bills, you should discuss the matter with your financial provider. He/she will give you an expert insight into the issue.

  • Can you manage to make the repayments?

This is one of the most important questions to ask when looking at consolidating debt. You should make sure that taking up a loan is the right choice for you. Also, see if you can manage to make the repayments in your current financial scenario. If you anticipate that you can work on diminishing your monthly expenditure, we recommend you to do that before actually seeking to take another loan.

It’s also highly recommended to factor in possible interest rate increases, and unprecedented changes in your circumstances and budget.

  • How does your credit report look?

Note that credit providers will always evaluate your credit file in order to appraise your capacity of repaying the sum within a given timeframe. Considering that you can obtain a copy of your credit report free of charge, you should do that in advance, to ensure that there aren’t any mistakes.

It may seem like common sense, but you should bear in mind that debt consolidation is still debt, and you should treat it as such. It is a decision that can be really helpful to numerous individuals, but it requires a lot of thought. So, the verdict is entirely up to you, your budget and personal specifications. Make sure you establish a financial goal and craft a realistic schedule for paying off your debt. Sometimes, we ought to embrace a range of changes to diminish debt, and this applies in all cases.

Bear in mind that each situation is distinct, and you can always discuss with a financial consultant before making a call. After weighing the pros and cons related to debt consolidation, you’ll be sure that you’ve made the right decision.

Categories
News Debt Management

Many Australians Are Turning to Debt Agreements

Debt agreements are an alternative to declaring bankruptcy. Rather than be haunted by the irreversible effects that bankruptcy can have on your credit record, entering into a debt agreement can give you a debt-free fresh start. They’re becoming the popular choice for Australians in need of debt solutions. Debt agreements are overseen by the Australian Financial Security Authority (AFSA). As a government body, it’s AFSA’s job to regulate debt agreement administrators, in order to ensure they are resolving debt at the highest standard possible. The AFSA has been finding an increasing number of Australians are turning to debt agreements to solve their debt problems.

Why So Many Australians Are Turning to Debt Agreements

Although a debt agreement is technically an act of bankruptcy as it is under the Bankruptcy Act of 1966, it is considered another option to going bankrupt. There are also many differences between the two, making one look like a much better option to thousands of Australians. A formal debt agreement will appear on your credit file for five years and can prevent you from obtaining further finance during that time.

The AFSA has reported that there were 28, 288 personal insolvency cases reported across Australia during the 2014-15 financial year. Additionally, their June report found that there was an increase of 4.3% for people who entered into Debt Agreements compared with the March quarter. That figure rose from 2,568 to 2,678. Of the Australians who entered Debt Agreements, only 7.7% of them were for business-related reasons, which suggest that the rest were personal debts like credit card debt from overspending.

The amount of Australians entering into debt agreements for personal reasons shows that as a nation, we frequently get over our heads in arrears. Whether getting into uncontrollable debt is due to living beyond our means or just poor budgeting remains to be seen. Debt agreements are for unsecured debts; unpaid credit card, telephone and utility bills. The Australian Securities & Investments Commission (ASIC) puts the nation’s credit card debt at nearly $32 billion, which works out to approximately $4,300 per cardholder. That’s quite a lot of unsecured debt. It’s no wonder people are having difficulty making repayments.

Debt agreements are for people without a former bankruptcy on their credit record, who want to pay back their creditors. Going through a practitioner who specialises in agreements, your debt is negotiated with creditors and merged into a big sum that you pay back over time. If you have a debt agreement, the interest is frozen and anyone you owe is no longer able to contact you to request payment. It takes away the multiple burdens of debt collectors sending letters and making phone calls.

If you’re in need of a solution to your financial burdens, fill out our enquiry form and find out how we can help you.

Categories
Debt Consolidation

Why Should You Choose Debt Consolidation?

If you are like one of many Australians with numerous debts, you’ve probably realised that there are lots of options out there. One of these options is Debt Consolidation. This finance type comes with a number of benefits when you’re facing mounting debts from multiple creditors. But why choose debt consolidation? Here are the top reasons for consolidating your debt:

You will only have one repayment

When you’re juggling many different repayments – sometimes on a weekly, fortnightly and monthly basis – it’s easy to lose track of how much is left owing, how much the interest is on each and every balance. Debt consolidation is the process of taking out a loan to cover your debt, and then you repay that one loan. Your single repayment will be bigger, sure, but only having one payment to make is part of the appeal and definitely one benefit of debt consolidation. It also makes it easier for you to budget the rest of your expenses, knowing the exact amount that is needed for your debt which will be the same each month.

Debt consolidation loans have lower long-term interest

A big reason why you should choose debt consolidation as your way out of debt is for the money saving that you can experience! Credit cards and car loans are the kind of debt that accrue interest at a ridiculously high rate. With a debt consolidation loan, it is considerably lower, meaning you’ll save more money on your repayment each month as well as over the course of the entire loan.

Improve your poor credit rating

If you’ve been consistently late in making repayments on your debt accounts, your credit score has likely suffered. Unfortunately, a low credit rating makes you ineligible for financing a big purchase – such as a home loan. However! If you have all your debts in the one loan and you’re always on time in paying, your credit will start to rebuild. Having a decent credit rating also means that your bank or provider will lower your interest, potentially saving you quite a bit over the term of your mortgage. Improving your credit and making sure you’ll be approved for a home loan are two more benefits of debt consolidation.

You will stress less

Do you receive multiple calls and letters per week from debt collectors? With one single loan, that will lift a significant weight off your shoulders. There will be no reason for creditors to be hassling you all the time, as your repayments to them will be taken care of. That means you can relax; the sinking feeling you get when your phone rings will be gone.

Now that you’ve read about the ways debt consolidation can help you, you should be in a better position to judge whether it’s the best way forward for you in terms of getting past your debt and repairing your credit rating, as well as easing the emotional burden that accompanies a mountain of debt.

Categories
Bad Credit Loans

Loans for people with bad credit in Australia

Bad credit can happen to anybody but it should not be the last word when it comes to getting a loan. Credit card bills mounting up or even a lack of credit history can cause a person’s credit rating to drop. And if the credit rating gets low enough then it can be a hassle to get a loan for a car, a house or a quick loan to cover the bills. If you have bad credit, you might still have a way to get access to the money you need because there are loans for people with bad credit in AUSTRALIA.

Loans for people with bad credit In Australia

If you do enough research, you will find that there are loans available specifically for Australians with bad credit. It might be a loan to consolidate your debt or to pay medical bills but no matter what your situation there are solutions out there.

One can always go to family or friends for a loan or to get help co-signing a loan but this can strain those relationships. If you are reaching out to a loved one for help then make sure to do your best to ensure that you will pay back the loan by setting out the details of the loan in a contract. A boss or business associate is another source but as with all of these solutions it can end up being a disaster if they feel they won’t get the loan repaid in time.

If you are a home owner and have built up equity in your home then there is always the possibility of taking out a line of credit against the equity you have built in your home. This can be a risky way to get money since you will be risking the very home you live in.

The best solution is finding loans for people with bad credit from an official lender. Big banks will often turn down anyone who does not have a perfect credit history or enough paperwork but there are alternative lenders who offer low doc loans and loans for people with bad credit.

There are options available and with a little research, people can get a loan even with bad credit. If you need money to make ends meet or to get your mounting debts in order, then look to a lender that provides loans for people with bad credit.

Categories
Debt Consolidation

Debt consolidation loans and the future of personal finance

Banking is evolving to meet the needs of a more technologically savvy customer base. One finance type leading this trend is debt consolidation personal finance. Non-bank lenders are offering many of the same services as big banks and also offering those services in handy mobile applications on smartphones. Many large institutions are beginning to realize that they must become as fast and available online as the smaller lenders.

Debt Consolidation Personal Finance online

Even something as common as consolidating multiple debts into one monthly payment with lower interest rates and easier payment terms is becoming something that can be done online without having to physically go in and speak with a financial advisor.

Modern banking is done more and moreover the Internet and through mobile applications and this is great for both the lender and the consumer. The consumer has many more options at their fingertips like alternative lending that is based on their social media profiles as well as their bank statements. Peer-to-peer lending has also become more popular now with a person’s access to thousands of individuals who are able to lend or a group of people who are willing to come together and lend small amounts of money to persons or businesses in need of capital.

Having more options for ways to get capital means that individuals and small businesses can reach out to a variety of lenders to get the funds they need. If someone needs to consolidate their debts into one and have the repayments lowered due to lower interest rates, they will also have the added benefit of being able to negotiate the repayment period to whenever it is most convenient. Non-traditional lenders have taken to new technology very quickly and the big banks are just starting to catch up.

The future of banking like mortgage loans to debt consolidation loans in Australia is going to be online and performed through non-human avatars that are battling to give the consumer the lowest possible rates and the most competitive options. The public will be the ones to benefit in the future of banking by having more options online and also having the added benefit of not having to pay for extra service fees. The new banking systems in the future will have to offer rock bottom cost and top quality services because of the competition.

Debt consolidation loans are the type of loan that is on high demand in Australia since most people have multiple debts and they find it hard to make punctual payments. Non-bank lenders that offer debt consolidation loans attract the majority of customers due to their presence online. Australian Lending Centre is the leading debt consolidation loan provider in Australia, extending their helping hand across the country. So fill in the quick enquiry form to apply for a debt consolidation loan online and one of the friendly financial experts at Australian Lending Centre will be in touch to help approve your loan as soon as possible.

Categories
Financial Planning

Making Sense of Australia’s Comprehensive Credit Reporting

Understanding Bad Credit with Australia’s new Comprehensive Credit Reporting

Australia’s new comprehensive credit reporting system came into effect from March 12 this year and has changed the manner in which some lenders look at risks when accepting new clients.

Categories
Debt Management

What is the Impact of Becoming Bankrupt?

Bankruptcy does not last forever. Usually, its protection lasts only a year. During the period, the individual’s financial affairs will be put under restriction. That means there are certain privileges that the bankrupt person may not possibly enjoy even after bankruptcy has been lifted. Discover the impact of bankruptcy here in this article.

Furthermore, being bankrupt is not a guarantee that a person will be totally free from any financial obligation. In many cases, the individual is still required to pay a certain amount to repay debts from creditors following an assessment of current inflow and outflow of income. The repayment scheme under bankruptcy may continue even after the individual is discharged from the provision.

Needless to say, bankruptcy brings about serious implications. Its impact can never be underestimated and overlooked. Aside from the embarrassment and eroded self-esteem, an individual can face the greatest setback in his financial aspect.

Categories
Financial Planning

How Can Financial Distress Impact Your Health

The stress caused by the economic downturns and financial shortcomings can literally make you sick. This is quite logical. In the recent global economic downturn, many evidences were recorded linking financial distress to various health conditions. That link is not surprising.

In 2005, a research was conducted in the US to identify possible health implications of financial distress. That study explored specific health effects that are often and logically associated with financial problems. It surveyed random individuals from across the country.

The results showed that there are various perceived possible effects of financial stress on both physical and mental health. Financial problems and poor health are associated. Stress is the main health impact of job loss, piling debts, loan defaults, and budget shortages. From there, many other health conditions can possibly ensue.

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Financial Planning

How to Financially Deal with a Job Loss

With the previous spates of job layoffs amid the economic crisis, everyone logically feels nervous about possibly getting in debt and running out of cash. These are interesting times and all of us should focus just on the positive. Stay productive and resourceful especially when dealing with your finances.

Job loss could be inevitable. No one could be spared once the financial crisis bites on companies. That is why you should be prepared for the unexpected. It is important to know how to cope with a possible crisis. You could cope with the loss of your income if you would observe the following tips.

Categories
Debt Management

Dealing with Retirement Debt

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.

Categories
Personal Loans Short Term Loans

Christmas Shopping – Common Spending Habits

Christmas is undoubtedly a season for shopping. The spirit of the occasion is indeed in gift-giving. You may have to shop for all the presents you intend to give away. At the same time, you may want to shop for yourself and for your household.

It is not surprising that many consumers tend to overspend during Christmas shopping. That is because malls and retailers are doing their best to entice you to spend. Your shopping mood could be set on fire by the festive decorations. The special markdown sales and new items on the display could further persuade you to buy until you drop.

Are you ready to once again hear the cash register ring for your Christmas shopping? There are many tips you should first look at and observe. Here is a simple and practical list of the do’s and the don’ts when shopping for the season.

Categories
Financial Planning

Calculating your Net Worth

Your net worth could be an effective indicator of your financial condition. It could measure your annual progress financially. In general, the net worth is the overall sum of all your current assets or properties minus the sum of all your liabilities. This way, you could instantly and clearly see if your assets are still bigger compared to your liabilities, which is the ideal scenario.

Calculate your net worth to determine your current personal financial performance. Do not worry if you think you would obtain a negative figure. Instead, be positive about it and set effective goals to emerge out from the situation. It would surely be helpful and more advantageous if you knew your present financial condition. Furthermore, computing net worth is not as difficult as you think it is.

Categories
Debt Management

Tips to Avoid Debt this Christmas

Every year the Christmas holidays could be considered as the most expensive shopping season. That is because consumers usually spend so much during this period as giving gifts has been synonymous to the spirit of the season all across the globe. Of course, buying presents come with specific price tags.

Are you ready to once again spend a fortune this Christmas? You do not have to, if you would be more frugal to manage your money this holiday season. Do not spend way beyond your budget set for Christmas shopping. Otherwise, you may end up accumulating more debt that you would take care to repay months after the season. Here are five ideas on how to manage your money this Christmas holiday season so you would not end up being in debt.

Categories
Credit Card Consolidation

Australia’s Credit Card Debt – What to Know

Australian consumers are now more cautious about their spending. They are now more inclined to increase their savings and clean up their credit card debts. This observation is according to financial experts from Bendigo & Adelaide Bank. They added that local households are now aiming to put their finances in better order due to the uncertainty about global economy especially after recent reports about credit woes in the US.
Australia’s credit card debt is proving to be interesting and conflicting.

Categories
Debt Management

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.

Categories
Debt Management

Australian Household Debt Increasing

According to the latest household debt information from the Australian Bureau of Statistics, average debt for each household is now at $50,500. It is up to 34% higher compared to the household debt average on the preceding report. This clearly indicates that household debt across the country continues to rise.

It is sad to note that debt has now become a part of living. Needless to say, it contributes to daily stress in the lives of numerous Australians. It even affects overall health and happiness. To be able to fully understand rising household debt so that proper strategies could be employed to control it, there is a need to analyse the possible causes.

Categories
Debt Management

Debt is a Powerful Trap

Debt is one of the most hazardous forces to confront in the world of personal finance. It has destroyed many people’s lives in the past couple of years along with the global financial crisis, interest rate hikes and unemployment rates higher than ever. We are here to help you to avoid falling into the powerful debt trap.

Government statistics show that total insolvency activity in Australia rose 11% (36,479 cases) last financial year. Most of these were bankruptcies and 86% of bankruptcies were non-business related, therefore they were for personal reasons.