Debt Management

How can I manage debt?

If you find yourself in a position of overwhelming debt that you need to get on top of, the best thing you can do is get started. No matter what our circumstances, there are many reasons you may find yourself in a position of debt. This leaves you wondering, how can I manage debt?

It doesn’t make you a bad borrower or indicate that you don’t know how to manage your finances. Sometimes, unexpected expenses can crop up that haven’t been budgeted for, leaving you struggling to pay it off. This is where debt management comes into play. We take a look at what is debt management and how to get started.

How can I manage debt?

Are you wondering exactly what is debt management? It is simply a strategy you can put in place to help manage your debts and to put you back in control of your finances. It’s no secret that debt can creep up on us, with unexpected expenses tipping us over the edge. These can’t be planned for and can push us into spiralling debt.

Thankfully, there are plenty of options available when it comes to debt management, so you can find a strategy that suits your individual circumstances to help you get back on top of it. It’s an agreement you enter into with your creditors to manage the repayment of your debts. You can negotiate the terms with your creditors to come with a plan that you can successfully manage to pay back your debts.

There is no simple answer to “how can I manage debt”, however debt management is your best place to begin. Debt management can help you get on top of your finances by getting the help you need to see yourself out of debt on terms you can meet. It is about taking back control of your debts and making your life much easier in the process.

With a debt management plan you can:

  • Reduce interest rates
  • Waive late fees
  • Lower monthly payments
debt management

What Is a Debt Management Plan?

If you are worried about your own accumulating debt, then a debt management plan could be just what you need. What is debt management? It’s about coming to an agreement with your creditors to reach an affordable solution to your financial needs.

Of course, this isn’t always easy to do. Often, a third party is brought in to negotiate with your creditors on your behalf to help. Their goal is to bridge the gap between you and your lender to find a solution that works for both parties.

How can I manage debt? With a debt management plan in place, you will have a new repayment schedule with your creditors that will be more manageable with your financial situation.

A debt management plan is often the last step before going into a Debt Agreement or declaring bankruptcy. A Debt Agreement is a legally binding agreement between you and your creditors, which if not fulfilled, can lead to bankruptcy. If you can settle your debts with a debt management plan, it is the best solution to help you in the long run.

How To Set Up A Debt Management Plan?

Now you know how can I manage debt, it’s time to learn how to set up a debt management plan.

  1. The first step is to take a look at your own financial situation. What is your income and what are your expenses? Set out a thorough budget that outlines all these details.
  2. Next, put together a list of all the lenders you owe money to, how much you owe and the interest rate.
  3. Now is your chance to work out what you can afford to pay to each lender each month. You may want to start with the debts with the highest interest and just pay them or pay an equal amount to all your debts.
  4. Once you make a decision, contact your creditors to explain your situation and the help you are looking for. Propose a plan to help you repay your debts.
  5. If your creditor agrees, then you can start making repayments according to those plans. If your creditor doesn’t agree, it might be time to bring in a third party that can negotiate for you to get the best deal possible.
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Getting The Help You Need

Finding yourself in a position of debt that you are unable to repay isn’t an ideal circumstance for anybody. Thankfully, there are options out there to help. If you are wanting to set up a debt management plan, then speak to the experts at The Australian Lending Centre today.

We can look at your individual circumstances and help put a repayment plan in place that you can afford. We will then act on your behalf to negotiate with your creditors to get the best deal possible. It’s the first step to getting yourself out of debt and in a better financial space. If you need help, pick up the phone and give us a call today.

Debt Consolidation Debt Management Financial Fitness

Learn How To Manage Finances After Divorce

You might have been led to believe that marriage ends in ‘happily ever after’ (thanks to Disney), but the reality is that approx. 1 in 3 marriages ends in divorce. Emotional consequences aside- the financial impact of divorce can last for decades and carry on into older age, according to new research. It’s important to understand how to manage finances after divorce.

The numbers and women

According to a CII research report:

  • 34% of women in their 30s say their money wouldn’t last a month if they lost their main source of income.
  • The average man accumulates 5x the pension pot of the average woman.
  • The average divorced woman has 1/3 the pension pot of the average divorced man (£9,000 vs £30,000).
  • Most women in the bottom 40% of households by household income have no pension wealth at all.
  • Women’s household income fell by 41% following a divorce or separation after age 50, while men’s household income dropped by only 23% (GAO.GOV downloadable report).

Why such a strain on women?

46% of divorced women said they experienced financial surprises, including:

  • Being unaware of the total size of their marital debt (the primary mortgage, home equity line of credit, auto financing, credit card debt and loans).
  • Not anticipating the financial need to return to work.
  • Assuming they could keep the marital home.
  • Expecting child support would be higher or last for longer.
  • The giant cost of health care insurance.
  • Underestimating the cost of getting a divorce.
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Sadly, 47% of divorces involve children under 18 years of age (

“Child care, medical expenses, education and extracurricular activities are typically called into question post-divorce.”

heri Atwood- Founder & CEO of SupportPay

Since almost 82% of parents with custody are women, these expenses that fall outside that base monthly payment usually land on the mothers.

Ways to manage finances after divorce

Enlist a good divorce solicitor

They can advise you and help in devising a plan in moving forwards.

Close all joint accounts

Open new accounts in your name and take your name off joint bills. Ensure that your credit record is clean.

Be aware of any joint debt

After divorce, you not only split assets 50/50 but also split any joint debt. If you suddenly find yourself juggling millions of different debts, then it might be worthwhile looking into Debt Consolidation.

Clean up your retirement accounts

Speak to a professional about dividing your superannuation accounts.

Don’t get emotionally attached to your marital home

Can you realistically afford to keep it on your own or would it be better to sell up and find something more economically suitable?

Budget smart

Be aware of your income and expenditure. Work out your current budget and plan for a financially healthy future.

Your financial support options

Whether it’s personal or business financial support you require- help is always available.

Get the support you need – financially or advisory from us.

Australian Lending Centre offers:

Speak to our team to see which option is best suited to help you.