Australians debt levels near the highest in the world and continue to rise, presently ranking 4th in the debt stakes world wide. When broken down the debt usually is comprised of mortgages, investor, personal, student and credit card debt.
65% of Australians believe they will not have sufficient funds in retirement and sadly if we continue ranking 4th this figure will only rise. There are solutions however that simply take looking in to your finances and arranging them in a manner that works for both you and the creditors for the long term.
Many companies advertise solutions to debt,
budgeting, money management etc. Whilst these companies are great in their goals, be aware that to use their services you will also be paying for that service.
Dependent on what you case is, your income and level of debt these firms will charge anywhere from $1000 to to $5000 as an establishment fee for their budgeting plan and guided assistance along with administration fees of approximately $2000 per year, and in some cases much higher.
Some firms even require extra fees for the payment plan.
These firms are intermediary, brokering deals with your creditors, however it must be noted that they will pay themselves first before your creditors.
Is there another way?
There are other ways though that will cost nothing more than your time. National debt helpline 1800 007 007 provide a free, confidential and independent services. Their financial Councillors can:
- Offer suggestions on ways to improve your financial situation
- Check if you’re eligible for government assistance
- Negotiate payment arrangement with your creditors
- Explain in detail your options and their consequences, including debt recovery procedures, bankruptcy and other alternatives
- Assist with applying for a hardship variation
- Organise your finances and do a budget
- Refer you to other services, for example, a gambling helpline, family support, personal counselling or community legal aid
Financial cousellors also assist with the following:
- Debts you are finding difficulty in paying
- Threats from debt collectors
- Debt recovery through the courts
- House eviction, disconnection of gas, electricity, phones etc
- Uninsured car accidents, taxation debts and unpaid fines
Take the time to get yourself back on track and find peace of mind. You always have options available to you.