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Debt Management Tax Debt Loans & Relief

Debt Help – Unemployed Survival Guide

With the advent of a global pandemic sending Australia into lockdown mode, many businesses have suffered immensely. Social isolating is now the norm and businesses that were once thriving have been forced to close. This is a situation that no-one could have predicted and has left a lot of people searching for debt help.

Here is your unemployed survival guide.

I Lost My Job, Now What?

If you have found yourself without a job during this COVID-19 pandemic, you are certainly not alone.

With restrictions placed on restaurants, pubs, gyms, cafes and many other businesses taking a huge hit, they have been forced to lay off their employees. Australia’s unemployment rate rose to 5.2% in March. With Employment Minister Michaelia Cash stating that Treasury modelling shows it will spike in June at around 10%.

On top of this, figures from ANZ showed total job ads plunged 53.1 per cent in April, compared to a 10 per cent drop in March.

While the most logical solution is to go on the hunt for a new job, with fewer jobs available and more people looking for work than ever, this just isn’t an option for many. This has left many families looking for debt help. If you find yourself in this position, here are some steps you can take.

Look For Your Entitlements

The Australian Government has stepped up to help those who have lost their jobs during this time, so it is worthwhile looking at what you might be entitled to. Here are some you can look into:

The Jobseeker payment is available to those who were stood down or let go, including sole traders, self-employed, casual workers and contract workers. You have to meet the following requirements:

  • Between 22 years old and Age Pension age.
  • Income is under the test limits.
  • You meet residence rules.
  • You meet their Government’s definition of unemployed and are looking for work.
  • You’re sick or injured and are unable to do your usual work or study for a short time.

If you meet these requirements, you are entitled to anything from $565.70 to $790.10 a fortnight. Your partner’s income could also affect what you are entitled to.

Coronavirus Supplement payment: if you are eligible for the Jobseeker payment or other Human Services payments (such as Parenting Payment and others), then you will be eligible for this one too. It is a new support payment of $550 per fortnight, once again, dependant on how much you or your partner earn.

Economic Support payments: this is a one-off $750 payment for those who already receive a range of government benefits.

The idea of all these benefits is to give people debt help while we social distance and stay home to help slow the spread of COVID-19. Of course, for some people, these payments aren’t enough.

Get Debt Help

If these payments aren’t enough to help you with the cost of living and you are finding yourself in debt during this crisis, then it is time to get debt help.

Speak with lenders

The first thing to do is to speak with your lender and ask if they can offer any help. Many businesses are stepping up to support fellow Australians during this time and offering interest-free periods to stop your debt from increasing while you struggle to pay it off. You may even be able to pause or defer certain repayments. Many banks are offering relief from credit card repayments.

Look at your service providers

It is also worth calling around your service providers and seeing if they can offer any assistance. Look at cheaper options or whether accounts can be paused or suspended for the time being.

Sort your debts

If you are juggling a number of different debts, try and prioritise them and work out which one needs to be paid off first. It generally makes sense to pay off the one with the highest interest rate first and work that way. Debt Consolidation could be a good option for you. This is where all of your debts are combined into one, easy to manage payment with a lower, fixed interest rate.

Payday loans:

It may also be worth considering a payday loan to help make ends meet while all this is going on. They are short-term loans with no restrictions on what they can be used for. They do come with high fees attached to them, so it is worth weighing up whether they are right for you.

Get Debt Help Fast

If you are up to your knees in debt and don’t know how to move forward, it is time to speak to a professional and get some debt help. The experts at Australian Lending Centre will talk you through your options and give you the help you need to get back on your feet and see you through this global crisis.

Remember, these are unprecedented times that no-one could predict. If you need debt help, just know you aren’t alone.

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Debt Consolidation Business Consolidation Loans Debt Management Financial Planning Short Term Loans

Coronavirus: Financial Security in a Pandemic

Financial security and pandemic. The two don’t really go hand-in-hand, do they? As if facing a global health crisis wasn’t terrifying enough, the world’s economic nosedive is hitting Australian families and individuals hard. Really hard. But as with most things in life, rest assured there will be light at the end of the tunnel. As cheesy as it sounds, we really are all in this together. Out of this strange and unwelcome period will come a brighter future for Australia and the rest of the world. So while we work on our self-isolation best practices, what are the steps we can take to achieve a sense of financial security in a pandemic?

Find out what government support applies to you

The Australian Government is currently providing financial assistance to Australians during this uncertain time. The assistance includes income support, household support and temporary early releases of superannuation. All the important details can be found here.

Be sure to also look at your state government and find out what packages and recovery efforts apply to you.

South Australia: The SA government has unveiled a $1 billion jobs stimulus package. Keep an eye on media releases and updates here.

Tasmania: The Tasmanian Liberal Government has prepared a $420 million stimulus package to support Tasmania. Keep an eye on media releases and updates here.

ACT: The ACT Government has prepared an economic support package of $137 million. Keep an eye on media releases and updates here.

Northern Territory: The Territory Labor Government’s $65 million Jobs Rescue & Recovery Plan has been introduced to keep shops open, cash flowing and Territorians working. Keep an eye on media releases and updates here.

Western Australia: The WA State Government announced a $607 million stimulus package to support WA households, pensioners and small businesses in the wake of COVID-19. Keep an eye on updates here.

Queensland: The Queensland Government has announced a $4 billion COVID-19 package to support Queenslanders’ health, jobs and businesses. Keep an eye on updates here.

Victoria: The Victorian Government has announced a $1.7 billion economic survival and jobs package to support small and medium sized businesses in Victoria. Keep an eye on updates here.

Write up a budget plan

If ever there were a time to start being conservative with your funds, now would be it. You’ll feel an alleviating sense of financial security in a pandemic if you can stick to a well-curated budget. Remember, the ever-changing economic climate brings all kinds of financial stress, so you’ll want to keep updated on what’s happening and budget around that.

Accept the current state of affairs and do what you can to work around it. Try to avoid spending as if everything is normal in the world. Evolve and adapt your spending to suit the current climate. That being said, please don’t panic buy.

Panic buying goes against the idea of budgeting for a pandemic. You might find yourself buying excess of what is necessary, being left with little funds to support other areas in need. Excessive stockpiling can also lead to price gouging, which is when the prices of certain supermarket items double or triple in price. None of us want to pay $20 for toilet roll.

Pay attention to budgetary changes

Now that you are in self-isolation, you will notice certain expenses disappearing and others rising. As you won’t be leaving the house, you will no longer be paying for petrol or for drinks or a night out. You will, however, be using electricity and water at home a lot more. Consider these variables and tailor your spending habits around them. You will need to pay close attention to what money goes where as it will be different to your routine money management system.

Carefully consider a loan

Australian Lending Centre is a leading provider of bad credit loans and consolidation loans Australia-wide. We strive to assist people who have multiple credit cards and personal loans. With the introduction of the coronavirus, we understand finances are tighter than ever. ALC can lend a helping hand. We offer a wide range of financial services and can provide a product to match your individual needs. From debt consolidation and debt management, to credit repair and low doc loans, ALC can help. Get started on your loan application here.

Look after your mental health and well-being

It may be the last on our list, but it is indisputably the most important. A healthy mental state is vital to feeling a sense of financial security in a pandemic. If you feel mentally on top of things, the finances will follow.

Avoid Fake News and Sensationalised Media

One of our top tips would be to avoid fear-inducing media if you find yourself inclined to anxiety. Although we have addressed keeping up to date with the latest pandemic news, this doesn’t mean delving deep into conspiracy theories and reading about all the tragedies. Have an understanding and be aware. Just don’t spend all your time consumed by COVID-19 news.

Stay Busy and Engaged

Try to keep yourself occupied with hobbies. Read a book. Go for a jog. Clean the house or learn a new recipe. Being homebound doesn’t have to mean being bored out of your brain. It certainly doesn’t mean sink into the couch and rotate through Netflix series’ all day.

Seek Support

Finally, seek support if you’re feeling helpless. Beyond Blue has a dedicated page on its forums to help those who are experiencing mental health depreciation due to the current global crisis. You can contact the Australian Government Department of Health on their national helpline (1800 020 080) for information on the pandemic. There will always be people you can speak to and people who can help.

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Debt Consolidation Financial Fitness

Forget toilet paper, why should you consolidate your debt amidst the Coronavirus panic?

It’s the word on everyone’s lips, the fear at the back of everyone’s mind. What will happen to me if I get coronavirus? What will happen at my workplace if coronavirus infiltrates? How do we keep ourselves and our loved ones safe? These are all very legitimate concerns, but there is also something much bigger happening as a result of the recently confirmed pandemic. There’s very serious economic instability right now, which is why you should consolidate your debt.

What’s happening economically as coronavirus spreads?

Our economy is coming to chaos. Cities are being evacuated, schools are closing their doors, travel restrictions are being implemented and stock prices have been in free fall as the airborne virus spreads. Amidst all this panic, just how is coronavirus impacting financial markets and our very own financial stability? What’s going to happen to those currently owing debt? How can debt consolidation help in the age of coronavirus?

First things first, you can forget the toilet paper. We’ve got bigger problems on the plate to worry about. With stocks taking a dive, there’ll be less capital available for banks to loan people money. We can also speculate that as the global economy becomes unstable, debt will begin to mount. How come? Well, for those who aren’t currently in fixed-rate agreements, debt is subject to rise as lenders begin changing their terms. With banks fiddling with policies, borrowers will be at the mercy of their changes and those paying off debt are left dealing with a very volatile financial landscape.

The baseline is that we just don’t know what the future holds regarding coronavirus. And we certainly don’t know what it means for our future financially. In a time like this, uncertainty is unsettling, especially with coronavirus posing risks to employment around the world.

How can consolidating your debt help you in such a precarious time?

By general definition, debt consolidation can help reduce the stress of multiple debts by bringing them all together into one single, manageable debt. If you owe debt, the lender could change their policies at any moment, and if you owe many, that’s a no brainer. It’s one alarmingly volatile position (and can be a very confusing one at that).

Australian Lending Centre is here to offer a sense of stability in this shaky time. Consolidate all your debts into one fixed-rate payment, save money with a lower interest rate and overall, feel secure with peace of mind for you and your family.

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Debt Management Financial Planning Personal Loans

Dos and Don’ts of Getting a Loan on Centrelink

It’s true that when it comes to taking out a loan, lenders will assess your earnings as a part of the application process. If you are relying on Centrelink payments, it can make it a harder process. But there are other factors involved as well. This means that depending on your situation, you’ll still be able to take out a loan if you need it.

Getting a Loan on Centrelink

Wondering what the process is and how you can go about getting a loan on Centrelink? You’re not the only one. We have set up a clear list of dos and don’ts for you to follow when it comes to getting a loan whilst receiving Centrelink payments.

Check Which Benefit You Are On

For some lenders, Centrelink benefits can count as income. This means your chances of taking out a loan can be higher. This typically doesn’t apply to all payment types. For example: Youth Allowance, Newstart and Austudy are unlikely to be accepted as part of your income. Why? Because they are temporary payments. If your circumstances change, you will no longer be eligible to claim them.

The first step is to work out what benefit you are on. Next, you should calculate how much this benefit contributes to your income. Providing this information to your lender upfront will make it quick and easy to determine what you are eligible for when it comes to taking out a loan.

Don’t Focus On One Lender

Just like taking out a regular loan, it is important to shop around. Of course, you want to do this without it affecting your credit score. The trick is to do it in the space of a couple of weeks. This way, it will only count as one hard inquiry instead of multiple.

Take a look at different interest rates on offer to ensure you are getting the best deal. You can even shop between traditional (banks) and non-traditional lenders to find what works for you. There is no one-size-fits-all when it comes to taking out a loan. Therefore, it is important to do your research and shop around to get the best deal.

Do Look For Lenders That Work With Centrelink

Shopping around is important. However, it is even better if you can find lenders that state ‘Centrelink Accepted’ on their website. Of course, if you can’t find this straight up, it doesn’t automatically mean they won’t accept Government benefits as a payment. The next step is to call them up and chat directly to ask them. Many lenders will be upfront about their policies. Meaning they will communicate whether they accept Centrelink payments as a form of income when taking out a loan.

Don’t Borrow Above Your Means

Being on Centrelink payments already, you don’t want to borrow above your means. This can mean finding yourself unable to pay off the debt. It can actually end up quite expensive borrowing small amounts of money – and it won’t solve your problems. All loans come with interest, so if you are unable to pay them back in a timely manner, you will be left with increasing interest over time.

Do Look At The Types Of Loans Available

Personal loans aren’t the only types of loans available to you while you are on Centrelink. You can also look at what other loans you might qualify for. This way, you can ensure you are on the best loan for your needs.

Centrelink Advance Payment

Depending on what type of benefit you are on, you may qualify for a Centrelink advance payment. Usually these need to be repaid within six months, or they will be subtracted from the amount Centrelink pays you.

Payday Loan

Finding a lender who accepts Centrelink as an income means you are eligible for a payday loan. These are small loans that tide you over until your next payday (or Centrelink pay).

Car loan

You can also take out a car loan. Your payments are used as a security for your loan, which can offer your lower interest rates.

Don’t Limit Yourself

Just because you are receiving Centrelink, doesn’t mean you are limited in your options when it comes to taking out a loan. All it means is that you need to shop around and find the right lender for you and your needs.

Loans On Centrelink

Getting a loan on Centrelink is very possible, especially if you follow this guide of dos and don’ts. If you are looking for a lender who can help you out, check out Australian Lending Centre. With our expert advice, you will be back on your feet again in no time. Finding a loan when you are on Centrelink can be simple, as long as you know the right process involved and get the right advice.

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Personal Loans

What To Do When You Can’t Make a Personal Loan Payment

When you have large outstanding debt, this could make it challenging for you to make timely repayments. And when you miss a payment, it is just a matter of time until you miss another one, and you enter a vicious cycle. Learn what to do when you can’t make a personal loan payment.

What can you do when you can’t make a personal loan payment?

Talk to Your Lender

For starters, you should consider discussing with your loan provider – whether it is a bank or a credit union, this should be the first thing on your list. Believe it or not, it is not that uncommon for people to struggle with making repayments. This can happen due to numerous reasons: it might be because of a large outstanding debt, or due to an unexpected life event, such as an illness, divorce, or natural catastrophe.

So, you should approach your lender and be utterly upfront regarding your situation. Truth be told, being transparent is critical. You shouldn’t feel ashamed to tell your lender that you’re struggling financially.

Negotiate for a Lower Interest Rate

Moving on, when you approach your lender, you should aim at negotiating for a lower interest rate. This could be really beneficial in aiding you to budget your finances more efficiently. You should assess the repayment amount you could cope with – perhaps the lender would be willing to make the arrangements to fit your individual needs.

Outline the fact that you wish to honour your outstanding debt, and the only way in which you can do that is if the monthly repayment were to be reduced. You might be required to write a letter of financial hardship, which should minutely present the reasons that caused your financial hardship. This letter should include the facts – such as job loss, divorce, illness, or other factors that determined your inability to make payments.

Nonetheless, try to keep the letter as to the point as possible. You should be upfront, yet not overly emotional, since this doesn’t portray you in the right light.

Consider Refinancing

In the case in which your current lender isn’t open to lower your interest rate, or to make the repayment plan more flexible so that it meets your needs, don’t give up. Another option might be collaborating with other providers of personal loans. This applies especially if you’re paying way too much in interest costs. This could be the case especially if you got the personal loan a while ago when loan terms were far from being convenient.

Refinancing is definitely worth considering, in this respect. Apply for a loan that would give you the funds to cover for the remaining amount on your personal loans. As soon as your application is accepted, you can use that money to pay for your existing debt.

Bear in mind..

Refinancing still means that you have the same amount of debt. The only difference is that you could save money in interest rate costs. At the same time, you could benefit from loan terms that are more suitable to your existing financial situation.

The key to knowing, for sure, that you’re actually getting a better deal is to research. Always compare various personal loans provided by distinct lenders. Australian Lending Centre can help in this respect, as well – make sure you check our website to find out more about our comprehensive offer of personal loans.

So, should you consider refinancing or not? The suitability of refinancing truly depends on your given circumstances. Ideally, you should assess how much your current personal loans are costing you, and compare that to the sum of money you’d pay for a new loan. Still, don’t forget to include one-time fees and other penalties that may apply in some scenarios. As a rule of thumb, don’t overlook reading the fine print of the loan terms, to know what you’re agreeing to.

Consider Credit Counselling

If you can’t make a personal loan payment, then it is likely that you also cannot afford to get help in the form of another loan. Perhaps getting credit counselling might guide you in the right direction.

Having an outside perspective can change everything. Counsellors are used to helping people that cope with the most difficult financial problems. Make sure you pick a counsellor that is truly reputable and willing to help – as opposed to someone that is trying to sell you something or to convince you to get another loan.

To conclude, it’s critical to comprehend your financial situation and avoid getting additional debt, if it’s possible. The key to making smart financial decisions is being aware how much money you make, and how much money you spend, and what you can do to change things for the better. Change doesn’t happen overnight, but, with a little bit of perseverance and ambition, anything is possible.