When your debt only seems to increase, living life can become stressful and frustrating.
Sleeping can become difficult when you're stressing about money, and even buying simple things at the supermarket can seem overwhelming.
Catching up with friends and family can lead to fights breaking out over money. You’re way behind in loan repayments.
Creditors and debt collectors will likely be calling you frequently, keen to get back the money you owe them. You want to pay them but you can't. Trying to generate savings might seem thankless when you’re spending everything you earn to pay off your existing debt.
To keep yourself above water, you could take out more loans or use multiple credit cards, perhaps using one credit card to pay another. It’s like trying to swim in quicksand. The harder you try to get out of debt, the deeper you sink.
If you feel embarrassed about being in debt, there's no need to. Many people across Australia are in the same exact financial position as you.
$33 billion in combined credit card debt.
These credit card balances are accruing interest, putting Aussies into even more debt. (ABS 2018).
$1.84 trillion in household debt
More than half of Australian household debts are made up of mortgage loans. (ABS 2018).
The truth is, there’s no need to feel ashamed or alone. Debt accumulates over time, and it can creep up on you without any warning.
There are countless reasons why you may have a tonne of debt. You may have lost your job. You may have experienced a devastating relationship breakup that left you with little in your pocket. You may have become sick and are unable to earn wages. You might have had a child but suddenly found costs were way higher than you anticipated.
It’s easy to lose control of your money if you don’t have the right financial training. If life’s overwhelming right now, try to relax. There is a way out.
It takes time and commitment, but getting out of debt is possible. The debt cycle can be broken!
The first step is to create a detailed, long-range personal budget. This is something we can help you with.
The budget that we provide can give you a thorough understanding of your financial situation.
You’ll see where your money is going and be able to get your finances back under control
Balance what you need with what you want to help you focus on the most important things
With the clarity you get from a budget, you can plan and create a debt-free future
Communicate with creditors and debt collectors on your behalf, so you don’t need to.
Organise your savings so money is in order and you always have financial resources.
Pay your bills and make loan payments for you so you can stress less.
Provide reporting that tracks every cent you earn so you know how much to spend and when.
Prioritise money for your living expenses so you don’t need to worry about losing control again.
Provide 12-month progress forecasts so you can keep an eye on how close you are to being debt-free.
You’ll have more time to make repayments as due dates can be moved to the end of a loan period.
You’ll have a single expense stream so you won’t have to think about so many debts and all their different interest rates.
You’ll get a short breather from your payments and a chance to get your finances back on track.
Some debt solutions can improve your cash flow, but only for the short-term. Some of these solutions include taking out more payday loans or borrowing cash from family and friends.
In the end, trying to pay off your debts like this will only lead to increased stress. They don’t fix the root cause of your debt difficulties and they put you deeper in debt. They’re just quick fixes.
Just remember, getting out of debt can take time. If you keep working at it and stick to a long-term vision, you may get there sooner than you think!
If you have bad credit, you could declare bankruptcy or apply for insolvency.
But keep in mind, these methods involve detailed legal processes and have long-term consequences. A successful application for insolvency could affect your ability to access credit for five years or more.
If you have bad credit, contact us to discuss options. There are many ways to get out of debt and we could bring up other methods you haven’t thought of. We’re here to help.