Debt Help

If money talks, mine only says goodbye.
Anonymous

What it Means in Australia ...

In Australia today, many people are living in the shadow of debt and chronic insolvency. With credit so accessible, higher limits on credit cards, and temptation all around, it is all too easy to become trapped on a financial treadmill. Unemployment, illness, marital breakdown, addictions, inadequate income or larger-than-usual bills can push people into a situation where they find themselves unable to meet their commitments.

If you are overwhelmed by debt, help is available. But you should seek assistance before legal costs become involved, and your credit rating is affected.

Commonsense debt reduction ...

Forget the "Get Rich Quick Schemes". Many people trying these just end up further in debt as a result. The alternatives are less exciting but they work:

Work out your budget first (follow the steps in Chapter 1 of Money Management for Women). If you are spending more than your income, assess your priorities.

• Cut down on non-essential spending.
• Cancel your credit cards.
• Sell some assets, if necessary, but not anything on which you owe money without contacting the creditor first.
• Find out from Centrelink about concessions and rebates available to people on low incomes.
• Check if you are eligible for emergency assistance from agencies such as The Smith Family, The Red Cross, St Vincent de Paul, The Salvation Army, and other such bodies
• Estimate what you can afford to pay off your debts. Do not promise $100 for each of the next four weeks, then find out you can't pay the rent! The creditor is usually happier if you promise an amount within your budget. If you get into debt again and can show creditors a history of progressive payments in similar circumstances, they will be more willing to negotiate with you.

Money Management for Women by Sheila Freeman and Helene Richards answers your questions on debt reduction  for Australians and all aspects of managing your personal finances ...

• What can I do if I lose my job and can't keep up the repayments?
• What should I say to my creditors
• My credit card is in arrears and I am being threatened with legal action, what can I do?
• What happens if I really cannot make any repayments?
• What legal procedures can a creditor take?
• What happens once judgement has been obtained?
• How much money can be deducted from my salary to repay debts?
• Can a creditor take my possessions in lieu of the debt?
• Can I stop the sheriff from selling my assets?

Find out more about debt reduction here