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Debt Consolidation Credit Card Consolidation Personal Loans

Saving Money On a Lower Income

There is a range of strategies you can employ to make saving money o. One of the major areas that can save you a lot in the long term is debt consolidation. There are also some other lifestyle choices you can make to improve your financial situation.

Many people think it is all too hard, but everything you do will help, even small changes can make a huge difference. We can all employ a range of measures that will prevent budget blowouts without sacrificing all the things you like doing.

If you are finding yourself on the roller coaster of no savings, bad debt management, poor (or no) budgeting and everything is a bit chaotic, Australian Lending Centre has some tips and tricks to get you out of bad debt employing activities such as debt consolidation, saving and feeling in control again.

First things first – Where Does Your Money Currently Go?

If you don’t yet have a budget, keep a financial diary for your pay period and track how you are spending your money. The Money Smart website offers a great money tracking app to make this easier. This will give you valuable insight into your habits and areas you can save.

  • What are you spending your money on?
  • How much is left over at the end of the pay period?
  • What money needs to go out on payments and bills?
  • Are there any areas of waste or unnecessary spending?
  • Are there areas where you are going backwards and getting into arrears?

Planning and Budgeting  – Where Will Your Money Go?

Once you have a record of what your current spending entails, get online to the Money Smart website and complete the budget tool. Be sure to include all your debts, payments, bills, and income. Mark payments and amounts in your calendar. Most bank online apps have the ability to schedule payments, so they come out when they are due, but if these are also in your calendar you won’t get any unexpected payments coming out. These regular payments can including things like:

  • Mortgage or rent
  • Car payments, car registration and insurance
  • Household/health insurance
  • Credit card payments
  • Loan repayments
  • Store card payments
  • Afterpay/ZipPay (remember that defaulting on these can effect your credit score)
  • Utilities such as gas and electricity (you may want to discuss bill smoothing with your provider – this is a regular payment over time rather than a massive and shocking bill each quarter)
  • Internet and phone

Bad Debts? Talk to the Credit Provider

The bottom line is that companies want to be paid. They are always receptive if you explain your situation, especially if you have, or are, experiencing financial hardship. You may be able to negotiate with them to reduce or put a hold on payments until you get back on top of things. Of course, you still have the pay the money back, but a hiatus on payments can help in the short term. Some credit providers will allow you to reduce the final figure if you can pay the debt outright. If they offer this, it may be time for debt consolidation. If you are too overwhelmed by the phone calls and letters, then talk to us about negotiating on your behalf.

Next Steps – Take Control With Debt Consolidation

When loans and credit cards get beyond what you can cope with in terms of interest and late payments, it might be time to call in help from the experts. Companies like Australian Lending Centre can offer a solution for a bad credit debt consolidation loan. This is where you negotiate with lenders for a reduced payout figure and then apply for a single loan that will cover all your bills in one payment with a lower interest than general credit cards and late payment fees. Having one simple debt consolidation loan payment to go out eat pay period is going to be a lot easier than trying to remember everything. The sooner you simplify your payments, the sooner you will be in an easier financial situation.

Money-Saving Tips

Turn off the TV

Are services like Netflix, Foxtel, Stan, Hayu and the iTunes store getting beyond ridiculous? Try cutting out all but the most popular one, to cut back. Turning off the TV will also help cut back on power and expose you to less spend-inducing ads. You might also have app subscriptions that you don’t need. Although these are small they can add up in a month.

Stop Hoarding and Start Selling

If you have closets full of unwanted clothes, try selling them online. A good clean out also helps you to see what your wearable wardrobe looks like so you can plan your clothes shopping to maximise your shopping budget. Also if you buy anything make sure it goes with the other items in your wardrobe. Take advantage of sales, why pay retail when most clothes will go on sale towards the middle of the season.

Look for those habits that add up

You can cut back on your habits, such as drinking alcohol during the week, smoking (probably goes without saying but your health and budget will thank you), buying coffees, can all save a surprising amount as well as having general health benefits. Limiting your drinking to the weekend can save hundreds a month, depending on your drink of choice. That bottle of wine after work at $15 a night can really add up over the week. Similarly, a $4 coffee each day is $20 a week. Make coffee at home in a keep cup and save money and the environment.

Stop using your credit card

By switching to using your debit card or cash for purchases, you will be more aware of your spending habits. It will also prevent the slide into bad credit debt.

Be frugal at the supermarket

Most of the time, buying in bulk or larger sizes are cheaper over time, so check on the prices for the larger sizes. Don’t shop with kids. Pester power is a thing and can increase your spend at the checkout. Never shop when you are hungry. Buy less meat, which is expensive, and opt for more meat-free alternatives, such as tofu, beans, and pulses.

Eat Smarter

With a busy life, planning meals can be a real chore, but while using services like Uber Eats seems like a good alternative, you are actually paying $5 on top of takeaway prices and it really can add up at the end of the pay period. By shopping in bulk, cooking healthy meals and taking the leftovers to work for lunch, you can save quite a lot each day.

Are You Missing Out On Government Payments You Are Entitled To?

Lastly, make sure you check all your entitlements with regards to government payments. As a low-income earner, you may be eligible for some form of financial support if you aren’t already receiving a government benefit. When every dollar counts it’s worthwhile claiming all you can. To check on payments and entitlements, check out the Department of Human Services. Even a small additional payment may ease your financial burden. Living on a low income is hard, but these payments are designed to help.

Small Changes with Big Returns

Once you have a clearer picture about where your money goes, you make changes to your lifestyle and start on the path to greater financial control, the happier, healthier and less stressed overall you will be.If you need help with debt consolidation, please get in touch. We’d love to hear from you.

Note: This information is general, and doesn’t take into account your specific personal and financial circumstances.

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No Credit Check Loans Business Consolidation Loans Business Loans Financial Fitness Financial Planning

Developing Budgeting Techniques for your No Credit Check Loans

The aim of this article is to give you all the tools and techniques to improve and develop your budgeting techniques so you can fully enjoy the benefits of no credit check loans.

Do you have any concrete plan for your loan the moment you acquire it?

A financial plan will allow you to do the following:

  • Build your brand without fear of not being able to support the marketing campaigns
  • Boost your sales and income
  • Reach your target market
  • Get referrals from satisfied customers

Here is a step by step guide on how to create a budget for your no credit check loans:

Understand the real meaning of budget

A budget is a piece of paper, document or app that records the following:

  • actual income
  • projected income
  • expenditures over a period of time

When budgeting for no credit check loans, you should consider the following before making a decision about spending.

What is important to me?

Are you willing to trade off a comfortable retirement for a holiday in the Caribbean? Do you want to eat at nice restaurants and charge them on credit cards, copping interest in the process? Would you prefer to pay for your children’s education instead of purchasing an extravagant model of car?

Each of us has our own priorities. Someone else’s priorities may seem to be trivial to you. A simple event can be other person’s bucket list experience. Your choices depend upon what is significant for you. Sadly, a lot of people get into debt for things that do not really matter to them in the grand scheme of things.

How do I want to live?

Nobody wants to live below the poverty line and not everyone is comfortable with debt. But, when a crisis occurs, such as family breakdown, health issues or unexpected changes, you may be forced to go into debt — which may be too great for you to handle. Thinking about creating a debt management strategy, could help you handle debts and free up a little income to meet your daily expenditure.

How can I accomplish my financial goals?

Visualise your future

Imagine what it would be like to build your brand with the income that you have and the revenue that you can get if you manage your business well. The challenge is to bridge the gap between your present situation and your vision.

You can ask yourself, ‘If I want to be that person, what can I do right now to get there?” The answer may be uncomfortable for you at first, but when you see that you are getting through with it with flying colours, you will be encouraged to continue until you succeed.

Set realistic and achievable financial goals

What are your long-term and short-term goals?

Do you wish to save $50,000 for a down payment to your dream house? Do you want to be totally free from debt in 5 years’ time? Or, do you want to save $500,000 to put up a new business outlet? Your goals should be specific. Put a deadline for each of them and review or adjust those goals until you accomplish them. For example, if you want to have a comfortable retirement, define ‘comfortable’. When do you want to retire? How much money do you want to receive each month? Where do you want to live?

Set short-term goals or those that you can accomplish in less than a year. Perhaps you want to pay off your $100 credit card debt in 6 months or save $2000 for a nice pair of shoes for Christmas.

Make a plan on how to accomplish your goals

Here are three factors to consider when creating a strategy:

  • Income: How much does your business make? Look into your net profit to have an idea of how much you can afford to save on a daily basis.
  • Consider your fixed and variable expenses, and your cash flow projections. The problem arises when there is nothing left for you to save.
  • Does your business maintain an emergency fund to cover unexpected expenses? If not, you may have to resort to financing to access quick cash and avoid possible business disruptions. If you have goals, it is important to start filling up your savings account as soon as you can.

Allocate the proceeds of your no credit check loans to meet your financial goals

If you have long-term goals, you can use the proceeds of your loan to boost your capital and eventually increase sales and income. It can also help you meet short-term goals, such as paying suppliers, buying new equipment and other urgent expenses. Budgeting for no credit check loans is crucial.

Sometimes, you have to make tough decisions to ensure that your projected income would exceed your projected expenses. You can either get a loan to raise your capital and eventually increase your income, or you can use it to consolidate your other debts and eventually save money in interests and fees.

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Personal Loans

Practical Money Saving Tips

If despite having a good budget, you are still spending more than you should, then it’s high time you must follow these practical money saving tips.

There are three steps involved in saving money

First, know how much you have

  • If you’re not a fan of a balance sheet, you can start doing this simple work today. Create a list of your assets and liabilities to know where you are financially. You might be earning a few thousand dollars, but your debt is over the edge. Or, you don’t have a decent income but you have zero debts. The exact amount of your asset versus your liability will help you identify serious problems with your finances and the areas that you can change.
  • One of the most practical money saving tips is to get a free copy of your credit report from a major credit bureau. It is a summary of your current and past financial obligations. You can also check the additional fees and penalties, and the accounts which should not be there anymore. By looking at your credit report, you will understand which debts are pulling your credit score down and which ones must be paid off as soon as possible. You can dispute negative entries which are inaccurate directly with the reporting agencies or your credit provider.
  • Collect all your bills and receipts. categorize them according to use—if they’re for home expenses, transportation, work-related, school,-related and so on, put a label on each file. That way, it will be easy for you to check which bills have been paid and those which were not.

Second, pay off your current liabilities

It’s not easy to pay your debts especially if you have too much of them. IN fact, debt repayment is a long journey and a lot of people have given up and settled for high interests and poor credit rating because they lost the motivation to reach their financial goals. Here are ways to pay off debts when you have limited resources:

  • Organise your debt by balance, minimum payment, interest rate and due dates. Check the billing statements or ask your lender for details.
  • Use the “debt avalanche” method to save money on interests. It is the method that pays the debts with the highest interests first and the lowest interest rate, last. By paying off the debt with higher interest, you stop the interest from accruing on your accounts.

An Example

You have a credit card debt of $10,000 with an interest rate of 20%. Each month, while you pay off your debt, a certain portion of that payment will go toward the interest.  If you pay off that debt first, you will be able to save $2000 in a year. You can consolidate your loan to pay your credit card debts or you can make extra payments each month to rip through the interest faster by making more payments toward the principal.

  • If you have limited income but you want to eliminate debts one by one, you can use the debt snowball method. Start paying the accounts with the lowest balance and work your way up to the ones with the highest balance. You may not save a lot of money in this process and it may not be the most practical approach, but it would motivate you to keep going, knowing that you are making progress. For example, you have an outstanding credit card debt of $10,000 at 20% APR, a $5000 short term loan and small consumer debts worth $500 from Store A, $300 from Store B and $150 from Store C, all at 5% interest. If you pay off your consumer debts amounting to $950, you will only save $47.50 in interest. But, it will be a good emotional experience that will motivate you to kick your hefty debts to the curb.

Third, find the money to save

Build your wealth on a daily basis. Here are simple acts of savings that could save you hundreds to thousands of dollars in a year:

  1. Keep your loose change
  2. Drink water instead of juice or soda
  3. Bring your own homemade or instant coffee at work
  4. Pack your own lunch and snacks at work
  5. Remodel your clothes. You don’t have to be an expert tailor or dressmaker to do this. Scissors and a little bit of creativity can do the trick.
  6. automate payments to avoid paying late fees on credit cards, utility bills and the like
  7. Declutter your home and office. You might be surprised to find recyclable items there.
  8. Choose thrift stores over high fashion boutiques. You can find designer clothes and good quality materials which were slightly used in there.
  9. Use your time to earn money. You don’t have to be a full-time worker to do this. Small and odd jobs may do, as long as it will give you extra money to save. You can make money out of your passion or hobbies.
  10. Avoid window shopping. It’s too tempting to resist.

Now you are aware of practical money saving tips, you will be able to take greater control of your finances. When you get started on saving, you will find it exciting and a little bit frustrating at the same time. There are times that you would be tempted to use your credit cards once again. So, if you’re finding it difficult to balance your debts and income—you can get a little help from a debt consolidation company to help you pay off all your debts and start all over again with only one debt to worry about. It will help you focus on saving and repayments, and hopefully on building your wealth as well.

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Investment Property Loans Personal Loans

Dreaming about Early Retirement

According to a recent global survey regarding early retirement, Australians dream about this much more than other nationalities. The study revealed that 75% of people who live in Australia and over 45 years old consider retiring within the next five years. Compared to other countries, the number of citizens wishing for this is significantly higher in Australia with only Argentina and France ahead of us. However, Australians do not have high hopes regarding this, and most of the people interviewed tend to consider early retirement just another nice dream that will never come true. The scepticism of Australians when it comes to this aspect is made clear by the numbers, as two out of five people who wish to retire early also affirm that they won’t be able to do it.

Why do Australians believe early retirement is too good to be true?

The financial problems represent the main reason Aussies do not allow themselves to have high hopes. People are aware that an early retirement means saving more in order to afford comfortable living arrangements.

As the survey showed, most people currently have debts, or they need to support their family or dependents, so saving enough money for this dream is next to impossible for them.

According to ASFA Retirement Standard, a person who is 65 and single needs about $43,000 a year, which means that he/she should have around $545,000 for an early retirement. In the case of couples, the approximate amount of money needed is $645,000. These calculations have been made for people who own a home and are in good health. If these conditions are not met, you need to add more money to a safe retirement.

Another survey from 2015 revealed that 1 in 3 Australians aged over 50 has saved less than $100,000.  There is a long way until reaching more than half a million dollars for them, and the retirement age is drawing near.

Considering these aspects, it’s not hard to understand why the majority of Australians see early retirement only as a dream.

Why do people want an early retirement?

The first survey mentioned includes a question regarding the reasons Australians want an early retirement. Even though they vary a lot from participant to participant, the study could differentiate two primary reasons. First and foremost, people who want to retire early aim for freedom to travel or go with their personal interests. This was the main reason for two out of three interviewed Australians, whereas one in four dreams to retire early because of the negative impact of their work on their health.

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First Home Buyer

Top 5 Ways to Save for a Home Deposit

House prices logically increase every year. It is not surprising that it gets more difficult for first time homebuyers to finally buy and own their own dwellings. If you are considering buying your own house for the first time, you should not despair. If you would be more strategic, you could surely find creative ways to save for the major purchase.