Today in the news, former economics advisor John Adams said that Australia is too late to avoid an ‘economic apocalypse’ even after his repetitive warnings to the political elites in Canberra. He continued to advise the Reserve Bank to raise interest rates to stop household debt getting further out of hand.
This bubble is simple to illustrate. Confidence! It’s the misled perception that Australia’s last twenty years of continual economic growth will never encounter any type of correction is most worrying. Australia survived the GFC and a mining boom and bust. At the same time, Sydney and Melbourne house prices have not skipped a beat or taken a backward step. Regrettably, the decision makers and powerful elite in Australia live in these two cities, and see Australia’s economic challenges through a completely different lens to the remainder of the country. It’s a two-speed economy spiralling out of control.
I accept that this impending crisis isn’t just as simple as house prices in our two largest cities, however the median house prices in these cities are ever rising and contribute dramatically to overall household debt. The specialists in Canberra are aware of an overpriced house market but appear to be repugnant to take on any focused efforts to correct it for fear of a property crash.
As far as the rest of the country goes, they have a totally different set of economic prerogatives. For Western Australia and Queensland especially, the mining bust has sent house prices plumetting downwards for years now.
Among one of the warning signs that illustrate the household debt crisis we are beginning to see is the surge in the bankruptcy numbers over the entire country, particularly in the March 2017 quarter.
In the insolvency sector, our team are seeing the adverse effects of house prices going backwards. While it is not the main cause of personal bankruptcies, it evidently is a crucial factor.
House prices going backwards is just part of the issue; the other thing is owning a home in Australia allows lenders to put you in a very different space as far as borrowing capacity. Simply put, you can borrow much more if you are a home owner than if you are not a home owner. I bankrupt people everyday and the quantity of debt differs greatly from the non-home owner to the home owner. Lending is founded on algorithms and risk, so I suppose if you own a home you’re more likely to have reliable income and less likely to wind up bankrupt, so consequently you can borrow more. If you own a home in Melbourne or Sydney, you’re a safer risk than if you own a home in Mackay, simply because in one area the median house prices are booming and the other is going backwards, as it’s been doing so for years.
In conclusion, it appears we are running into a wall at full speed, and there are not too many people suggesting we slow down. If you wish to know more about the looming household debt crisis then phone us here at Liquidation Service on 1300 795 575 or visit our website to find out more: www.liquidationservice.com.au
There is troubling news for business owners who have an ATO debt as of 1st July 2017. Small businesses need to be careful of ATO Bankruptcy since the ATO may disclose details of your tax debts to credit reporting agencies like Veda Advantage and Dun & Bradstreet. This will make it a lot more complicated for small businesses to obtain credit, possibly incapacitating them. How could this have a bearing on you? You may be affected if you find yourself in one of the following 3 categories:
- Have an ABN (i.e. you own a business and/or you are a contractor);.
- Have debts with the ATO that are in excess of $10,000 and are more than 90 days overdue; and.
- You are not in any sort of payment arrangement with the ATO.
Just so you know, the ATO must first notify you before they disclose your debt information to any credit agency.
If your ATO debts seem to be getting out of control and you don’t want your credit rating impaired then you have at least one viable option: Set up a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
Conversely, if you believe there is simply no hope or the ATO is threatening litigation against you as a result of your unpaid ATO debts, then bankruptcy may be a plausible option for you. If you would like to know more about how to recover from the crippling burden of business or personal debts, just give us a call here at Liquidation Service on 1300 795 575 or visit our website for additional information: www.liquidationservice.com.au.
A credit report is a specific document that records your history with creditors and has a major effect on your future financial abilities. Having a ‘good’ credit report is conventional as long as you pay your bills and debt repayments punctually. On the other hand, overlooking a repayment on a bill or debt repayment can cause significant problems if you plan to acquire credit again down the road. In recent times, the rules have been adjusted to place a greater importance on favourable history such as paying your bills in a timely manner, but overwhelmingly, credit reports are used as a means for creditors to assess your capabilities to repay a loan by checking for any financial errors you’ve made in the past. If you have made some financial oversights, how long does this information stay on your credit report? What types of financial errors are more notable than others? This post will look at these questions in order to give you a better understanding of how these documents work.
What Do Credit Reports Consist of
The following will specify the type of information that is commonly found on your credit report:
Personal Information such as your name, DOB, address and driver’s licence details
Joint applicant details if you’ve secured credit jointly with another person
Credit card information
Arrears brought up to date, such as any overdue or unpaid debts that have since been paid
Defaults and other infringements such as missed minimum credit card repayments and loan repayments which are over 60 days overdue
All credit applications
Debt agreements like bankruptcy, personal insolvency, and court judgements
Repayment history which is probably the most critical component of your credit report. It covers all credit accounts like home loans, car loans, personal loans and credit card loans. Any missed repayments will feature information such as the due date, paid date, amount, and any part payments if applicable
Commercial credit applications including any business or commercial loan applications
Report requests which lists all the lenders who have previously requested a copy of your credit report1
Credit Report Defaults
Defaults with creditors will be mentioned on your credit report and will impair your ability to secure credit down the road, so it’s very important to recognise what constitutes a default on your credit report. If you fail to make a payment on a debt, your lender has the ability to report your debt to a credit reporting agency who will then register this information on your credit report. But, loan providers can only do this if the following prerequisites apply:
The default amount is $150 or more;
You’re a ‘confirmed missing debtor’ or ‘clearout’ which indicates the lender cannot contact you because you have changed your contact number and address;
The debt is 60 days or more overdue; and
The lender has asked you to pay the debt by either sending you written notice in the mail, or by asking you over the phone1
Your lending institution must inform you of any intents in lodging a report before doing this. Normally, your contract or service agreement will outline when a default can be made and reported to a credit reporting agency.
How Long Does A Default Remain On My Credit Report
In the majority of cases, a credit default will remain on your credit report for 5 years, but if a lender cannot contact you because you’ve changed your contact number and address (referred to as ‘clearout’), the consequences are more extreme and the default will continue to be on your credit report for 7 years. It is essential to note that even when you do repay an overdue debt, the default will nevertheless stay on your credit report, however the status will be updated to reflect that the debt has been settled. When you apply for a loan, the lender will always check your credit report first and if there are any defaults, the lending institution can reject such loan applications. If this is the case, the lender must notify you that your application has been rejected based upon your bad credit report.
As you can see, credit reports are serious documents that can notably impact your borrowing capability and financial flexibility. The majority of the time, credit reports are either a pass or a fail, so any default, despite how big or small, will be specified on your credit report for five years. Whilst there are measures to improve your credit rating (such as paying your bills on time), lenders are really only interested in any defaults on your credit report and can reject a loan application based upon a single default. If anything, this article highlights the importance of paying your bills and debt repayments in a timely manner, so if you end up with any financial issues and can’t pay your bills by their due date, get in contact with Liquidation Service on 1300 795 575 for help, or visit their website for more details: www.liquidationservice.com.au
There’s no doubt that bankruptcy isn’t the most desirable situation to be facing. There are some serious financial implications involved and it’s a very difficult and stressful process that will affect you financially for years to come. Finding yourself in mountains of debt can develop in the blink of an eye, and lots of people find themselves in this situation because of a wide range of factors. Not being able to work due to illness is one of the most frequent reasons why individuals declare bankruptcy. It’s not as if they had any control over the circumstances, but being unable to settle their debts because they have no income is the hard reality they have to face. In fact, 7,900 individuals in Australia declared bankruptcy in the March 2017 quarter1, so it’s not as uncommon as some people may believe. If you ask me, I think that bankruptcy is neither good nor bad. Of course, those who declare bankruptcy have made some poor financial decisions and will penalised appropriately, however declaring bankruptcy is also the first step to financial freedom. Lots of folks struggle for years just to make ends meet, while their debts keep compounding, so in many cases, bankruptcy is a chance for a clean slate for people that are unable to repay their debts.
Though I’ve never been bankrupt myself, I’ve witnessed the journey of many individuals who have and surprisingly, the majority of people are better off and glad they went through the process. If you’re experiencing financial difficulties and considering bankruptcy, this post will summarise what life is like after you declare bankruptcy.
You Won’t Be Debt Free By Declaring Bankruptcy
Bankruptcy is pretty complicated, and there is a standard misconception that all debts are removed by declaring bankruptcy. This is definitely not the case. There are a range of debts that won’t be eliminated, for instance Centrelink debts, HECS debts, child support, court imposed fines (like speeding tickets), and also money that is owed to an insurance provider resulting from a car accident where you were uninsured and liable. Alternatively, filing for bankruptcy will clear debts such as credit cards, GST and tax, and unsecured personal loans. The reality is, you will still have debts to pay after you declare bankruptcy, but the most critical debts in most cases, such as credit cards, will be eliminated.
Feelings Of Guilt And Embarrassment Are Natural
Bankruptcy is an arduous process and lots of people who declare bankruptcy have feelings of remorse and humiliation; as if they’ve lost in life. This is quite regular, however it’s crucial to overcome these emotions because the reality is, humans make errors, and bankruptcy is a way that you can start a new beginning financially and get your life back on track. The sooner you recover from these feelings of guilt, the sooner you’ll be able to start the recovery process and create a plan of how you’re going to repay your remaining debts and rebuild your credit history. Remember, bankruptcy lasts for three years and after seven years, it will no longer appear on your credit report, so it’s certainly not the end of the world.
You Can’t Borrow Any Money For Three Years
Unfortunately, by filing for bankruptcy you won’t be able to borrow any money under any circumstances for three years. During this time, it’s necessary that you start rebuilding your credit rating by maintaining a regular income and paying your bills and outstanding debts on time. It’s simple but effective. After this three-year process, you become a discharged bankrupt and will have the chance to acquire loans for secured assets like houses and cars, but your interest rates will be much higher due to your bad credit rating. While it’s not always suggested to obtain loans straight away, it is possible. After seven years from the time you became bankrupt, your credit history will be clean, and you will have the opportunity to acquire all kinds of loans again at competitive rates.
Life after filing for bankruptcy obviously isn’t easy, but the emotional relief that most individuals experience after starting the process certainly softens the blow. There are some substantial financial repercussions involved, but declaring bankruptcy is the first step towards financial freedom and securing a bright future for you and your family. If you’re encountering financial difficulties, it’s always best to seek professional advice sooner rather than later. Whatever you do, don’t keep battling financially for years because you’re afraid of the stigma related to bankruptcy. It’s challenging, but it’s also not the end of the world. If you ‘d like to speak with someone about your financial condition, get in touch with Liquidation Service on 1300 795 575 for a confidential discussion, or alternatively visit their website for more information: www.liquidationservice.com.au
Many individuals deal with financial difficulties at some point in their lives, and the majority of these people are quite likely to be familiar with debt collectors. A debt collector is an individual whose job is to collect debts on behalf of an organisation. A debt collector can either be an employee of an enterprise you owe money to, or they could be a third party working with a lender. As you can picture, it’s not a simple task to squeeze money out of people who don’t have any. It would be fair to say that many people in debt are already strained about their financial challenges, and other people calling them to remind them of this doesn’t always end well. As a result, debt collectors have a lot of negative connotations. There have been a large number of cases of people being harassed by debt collectors so it’s important that individuals who are being contacted by debt collectors are aware of their rights and the best ways to deal with these kinds of communications.
Learn about Your Legal Rights.
Understanding what debt collectors can and can’t do is essential in being able to adequately manage any interactions you may have with them. Under Australian Consumer Law, a debt collector must not:
Use any physical force or coercion (forcing you to do something).
Hassle or harass you to an unreasonable extent.
Mislead or deceive you (or attempting to do so).
Take advantage of people that are vulnerable, disabled, or have any other similar circumstances affecting them.
Not only do these laws concern a debt collector’s behaviour towards you, but additionally your partner or spouse, family members, or anyone else connected with you. If you find yourself in a position where a debt collecting is breaking these Laws, make a formal complaint to the Australian Competition and Consumer Commission (ACCC)1.
How And When Debt Collectors Can Contact You.
It’s equally necessary to be aware of how and when debt collectors can contact you. They can do this by telephone, letters, emails, social media or by seeing you in person. Any time you have correspondences with debt collectors, it’s important that you keep a record of such correspondence including the date and time of contact, the methods of contact (person, email, phone), the debt collector’s name and company name, and what was said during the interaction. It’s also valuable to note that debt collectors must respect your right to privacy and supplying your financial information to another party without your permission is breaking the Law.
The Australian Consumer Law also stipulates that:.
Debt collectors can only make up to three telephone calls or letters each week (or 10 monthly).
Debt collectors can only phone you between 7:30 am and 9pm on weekdays and 9am to 9pm on weekends.
Debt collectors can only make face-to-face contact between 9am and 9pm on weekdays and weekends, once a month, and can only visit you if you haven’t responded to any of their past attempts at communication.
There is to be no contact from debt collectors on national public holidays.
Debt collectors must be reasonably sure that if they contact you electronically (social media or email), that your account is not shared with another person and their communication can not be seen by anyone but you.
If you do agree to meet a debt collector personally, any threats of assault or violence should be reported to the police immediately1.
Know What Options You Have.
A debt collector’s job is not to be polite and give you a series of debt relief solutions. Their job is to urge you to repay as much of your debt as possible, as fast as possible. So, the best thing to do is to understand what your debt relief options are. You can carry out some research on the web to search for what options you have or you could seek professional debt management advice (most businesses will offer free advice initially). Once you recognise what alternatives you have, you’ll be more confident in managing debt collector’s threats or demands, or any other collection tactics. If you don’t know what your options are, it makes the job of the debt collector much easier by having the chance to govern the interaction and informing you of what alternatives you have, whether they’re true or not.
It’s always a challenging situation when you come into contact with debt collectors. Their job is very difficult, and they’ll use any way possible for you to repay your debt since the quantity of debt you repay and how fast you repay it determines the commissions that debt collectors receive from creditors. The best way to handle interactions with debt collectors is to recognise your legal rights, when and how they can contact you, document all communications, and knowing what debt relief possibilities you have. If you’re aware of these points, then it will substantially improve your correspondences with debt collectors and hopefully won’t add more stress to your current financial predicament. If you need any advice about what debt relief choices you have, talk to the professionals at Liquidation Service on 1300 795 575 or visit their website for additional information: www.liquidationservice.com.au.
When it involves money, a person’s personality serves a meaningful role in their financial decision-making. Every person is unique, and that’s what makes us human, so it really shouldn’t come as a surprise that there are certain types of personalities that are more likely to have money troubles than others. It’s hard to reshape your personality traits, especially when you’re older, so simply recognising how your personality influences your financial decisions can help you make better financial decisions in the future. It’s undoubtedly an important topic to understand, as money issues can magnify rather quickly and you can end up in deep water within the blink of an eye. This article will investigate 4 different personality types whom are more likely to have money concerns, in addition to some suggested ways to improve your financial situation if you fall under one of these personality categories.
Financially speaking, the higher the risk the higher the reward, but the odds of experiencing high risk success is notably low. Some individuals are born as risk-takers, others develop this personality trait with time; but the majority of the time, it’s the thrill of the risk that these types of individuals take pleasure in. Statistically, the probability of financial success for the risk-takers are low, so it is essential for these types of people to diversify their risks to increase their probability of financial success. These people can make high-risk investments, but they can’t put all their eggs in one basket. A combination of high-risk and low-risk investments will drastically improve their financial future.
- The Spenders
Regardless if they’re wealthy or not, the spenders are the types of folks who live life to the fullest without thinking of the financial implications of their decision-making. Whether they’re spending money to have a great time, look good, or to simply please others, the spenders are likely to incur enormous amounts of debt which can take a long period of time to repay. Subsequently, their likelihood of financial success are considerably inhibited. Saving money is the key to financial success, so to avoid overspending, the spenders should consider creating a budget to track their spending habits and at the same time, analyse the triggers that cause them to spend their money in the first place. Facing the triggers that cause these types of people to overspend is the key to solving the issue.
- The Ignorants
The ignorants are commonly the type of individuals that are financially uneducated and have no interest in improving their monetary skills. The ignorants may have a similar rationality to the risk-takers in that they want to ‘live life to the fullest’ and as a result, spend all of their money and find themselves in debt. It’s vital that individuals with this personality trait learn the value of money and how it can be used to provide a better future. Instead of thinking about now, they should attempt to think about how spending their money now will impact their future. Take an interest in learning how to budget by reading online blogs and articles. Who knows, they might actually enjoy it?
- The Pessimists
In stark contrast to the risk-takers, the pessimists typically pass up on opportunities to make money purely because they fear they won’t succeed. When it involves large investments like buying a house or investing in the stock exchange, the pessimist will avoid taking any risks for fear of losing their hard-earned money. The concern with the pessimists is that by avoiding all risks, they will feel more secure, and this will inhibit their likelihood of financial growth and success. A good solution for the pessimists is to diversify their investments in a wide-range of markets to make certain they have a well-balanced portfolio that is low-risk and offers an opportunity for a good return.
There are obviously many other personality types than the ones specified above, however these are perhaps the most common personality traits that inhibits financial growth and can result in money difficulties. In today’s world, money is without question incredibly important not only for survival, but also to be able to enjoy the only life we have. Just because you have certain personality traits doesn’t suggest that you can’t modify some of them over time to be more financially responsible. If you need any assistance with your finances, or you’ve found yourself facing a mountain of debt due to overspending, speak with Liquidation Service on 1300 795 575 for assistance, or visit www.liquidationservice.com.au for more details.
All of us have seen the plethora of debt consolidation advertisements on TV. There is a considerable amount of competition in the debt consolidation market because unfortunately, many individuals are struggling financially and these companies provide much needed financial relief. Home loans, car loans, credit cards; people can acquire loans from a vast variety of lenders for virtually anything these days. The problem is that all these loans are difficult to manage and if you fall behind in your monthly repayments, you can find yourself in a lot of trouble.
The notion behind debt consolidation is that you can bring each of your existing debts together and consolidate them into one, easy to handle loan that is easier and gives you a far clearer picture of your financial future. For some people, there are a variety of advantages in consolidating your debts, and this article will examine debt consolidation in detail and the advantages they provide to give you a better understanding if debt consolidation is a good opportunity for your financial condition.
Debt consolidation allows you to repay all your current debts with a new loan that usually has different (and in most cases more desirable) interest rates and terms. There are several reasons that people use debt consolidation services.
All loans have differing interest rates and terms, however, credit cards possibly have the highest interest rates of all loans. Even though credit card companies usually have a no interest period of about a couple of months, the interest rates after this time can rocket up to 25% or higher. If you find yourself in a situation where you’re paying 25% interest on your credit card loans, it’s likely that your debt will grow much faster than you’re able to pay it off. Typically, debt consolidation can provide lower interest rates and better terms, which can save you plenty of money in the long-run.
Too much confusion with multiple loans.
When you have various debts with different interest rates and minimum repayments that are due at different times, there’s no doubt that it can be hard to manage and can become confusing at times. This increases the likelihood of forgeting a repayment which can give you a poor credit rating. Debt consolidation certainly helps in this situation by combining all of your debts into one which is notably easier to manage and gives you a clearer picture of when you’ll be debt free.
High Monthly Repayments
When individuals are confronting multiple debts, it’s very difficult to manage your cash flow as a result of the high minimum repayments required for each debt. In addition to this, different debts have different repayment dates and this can cause individuals to struggle just to make ends meet. If you miss a repayment because you simply don’t have the money in the bank, your interest rates are likely to be increased, you can get a poor credit rating, and your financial scenario can go south very quickly. Debt consolidation loans provide one repayment each month, and you can arrange your monthly repayment amounts depending upon the length of time you wish your loan to be.
With this being said, if you’re interested in consolidating your debts, it’s essential that you do suitable research to find the best debt consolidation interest rates and terms and conditions. You’ll find a large variety of debt consolidation companies, some are good, some are bad, and some are straight up predatory. To start with, you’ll need to choose a debt consolidation company that has lower interest rates and fees than all of your current debts. You’ll also need to examine the terms very carefully. Some consolidation loans can be secured against your home or other assets, and you may be required to pay extra fees for instance application fees, legal fees, stamp duty and valuation. The fact is, there is plenty of research that needs to be done before you can figure out if debt consolidation is the right option for you.
As you can obviously see, there are a range of benefits associated with debt consolidation for individuals that are struggling financially. Lower interest rates and fees, lower monthly repayments, and less confusion with multiple debts can save you plenty of money in the long-term, and it’s most likely better for your mental wellbeing too. This article isn’t intended to convince you to consolidate your debts, as it all relies on your financial state of affairs. Because of the complexity and the numerous variables to consider, it’s highly recommended that you seek professional advice so you can at least get an idea of what option is best for you if you’re experiencing financial adversity. In some circumstances, filing for bankruptcy is a better option, so before you make any decisions about your financial future, contact Liquidation Service on 1300 795 575 or visit their website for more details: www.liquidationservice.com.au
Bankruptcy is not a decision that should be taken lightly. There are some severe financial consequences involved and your financial freedom will be limited for years to come. This doesn’t indicate that declaring bankruptcy is the end of the world though. It should actually be regarded as the first step in securing a bright financial future for you and your family. Millions of individuals file for bankruptcy each year and most of them have the ability to buy homes, cars and obtain credit cards after they’re discharged. Further to this, understanding what life is like after you have filed for bankruptcy will clearly give you insight into making better financial decisions in the future.
In essence, once you have declared bankruptcy, you surrender control of your finances and assets to a Trustee for protection against legal action that may be taken by your creditors. Once the legal process has been finalised, you’ll be undischarged for a specific period of time (in most cases three years) after which time you’ll become discharged, which signifies that the financial constraints you incurred during bankruptcy are removed. Once discharged, your name will permanently appear on the public record (NPII) as a discharged bankrupt. What this article aspires to achieve is to give you an understanding of what happens after you file for bankruptcy and what options you’ll have after you become discharged.
You Can’t Leave The Country Without Permission
One of the restrictions of declaring bankruptcy is that you cannot exit the country while you’re undischarged unless you request permission from your Trustee. To do this, you’ll need to supply a lot of details relating to your destination, length of stay, contact numbers, and the reasons for your travel. It’s an offence to travel internationally without prior consent from your bankruptcy Trustee, and in most cases will increase the duration of your undischarged bankruptcy to at least five years instead of three.
You Will Be Offered Credit Instantly
One thing that surprises many discharged bankrupts is that they will immediately be offered credit by a vast array of creditors. The explanation behind this is that you won’t have the ability to declare bankruptcy again for an extensive period of time, so creditors understand that they have a good chance of getting their money back if you secure a loan. In certain situations, securing a loan and making timely repayments will help strengthen your credit rating, which will aid you in the recovery process. But be cautious, you don’t want to accept every offer thrown in your direction as some loan providers are very dubious and include hidden fees and charges that can put you in debt again immediately. The trick is to rebuild your credit score steadily.
Buying A Home Is Certainly Possible
There’s a frequent misconception that whenever you declare bankruptcy, you will no longer be able to obtain credit for a home loan. This is definitely not the case. While bankruptcy will leave you with a poor credit score, you can still purchase a home if you have the capacity to rebuild your credit within a couple of years, you pay all your bills on time, and you exhibit a responsible use of credit. Naturally, you won’t have the ability to acquire a mortgage straight after you’re discharged, so it’s imperative to build your credit record sensibly before even contemplating securing a home loan.
Check Your Credit On A Regular Basis
Most financial experts advise that discharged bankrupts should take a look at their credit report about twice a year. After initially declaring bankruptcy though, it’s paramount that you check your credit report every month for at least the first six months into your bankruptcy. Some creditors may still be demanding payments even though you are not required to make payments on any debts that were discharged in the bankruptcy process. So to minimise any further complications, it’s pressing that you monitor your credit report to make sure that it’s correct and up to date.
Although bankruptcy isn’t the ideal situation to be in, it doesn’t mean that your financial future is permanently constrained. There are some serious financial restraints imposed on people that file for bankruptcy, but after they become discharged and slowly rebuild their credit score, they’re perfectly capable of securing a bright financial future. Acquiring a mortgage and other credit lines will be possible a few years after discharge if the recovery process is well-planned and executed. Hence, it’s essential that you seek professional advice from bankruptcy experts to assist you in the process, as bankruptcy is rather complicated and there are many factors to must be considered to ensure a smooth recovery process. If you’re considering filing for bankruptcy, talk to Liquidation Service on 1300 795 575 or visit their website for more details: www.liquidationservice.com.au
Experiencing financial hardship is a considerably stressful situation and sadly, millions of people around the world find themselves in this position every day. People in this predicament have a number of options to recover from their financial distress, and bankruptcy should be considered as a last resort when all other alternatives have been exhausted. You’ve quite possibly seen some of those debt consolidating companies promote their services on TV for example. In many cases, it can be overwhelming to try to figure out ways to recover from financial hardships, and many will turn to bankruptcy simply because it seems the easiest way of doing so. But how do you know if bankruptcy is the right choice for you? This article will shed some light into bankruptcy in order to help you determine if bankruptcy is the best option for your particular situation.
Bankruptcy has some pretty severe financial consequences: a bad credit report, increased difficulty in acquiring loans, and higher interest rates are just some of these. So needless to say, bankruptcy should not be taken lightly. There are plenty of debt consolidating companies that are happy to help, which is similar to bankruptcy as all your debts are combined into one. This is often considered a sensible alternative to bankruptcy as the financial penalties aren’t as serious. But the best way to figure out if bankruptcy is the best solution for you is to seek specialist advice from bankruptcy experts. In the meantime, however, here are some signs that your financial position is in a serious condition and bankruptcy may be the best alternative for you.
If you don’t have any savings in your bank account and you’re facing a mountain of debt, then bankruptcy may well be the best option for you. Even if you have the capacity to work a second job to increase your cash flow, will this allow you to recover from your debts in the next 5 years? If no, then you should consider seeking professional advice about your condition, as bankruptcy can be a feasible alternative. Declaring bankruptcy will relieve you of these debts and though there are financial repercussions, it’s probably the best way to recover in this situation.
Making Minimum Repayments Only
If you can only manage to make the minimum repayments on your debts, then the interest on these debts will compound quickly and you should really consider bankruptcy before your financial position worsens. Without any extra income, it can sometimes take up to 30 years to settle your debts by making minimum repayments only, so all the interest you’ll be paying over this time can truly amount to massive sums of money. Even though you’ll still be paying off debts with interest after filing for bankruptcy, normally you can arrange better terms on conditions on your debts after declaring bankruptcy.
Debt Collectors Are Calling You
When you’re being constantly hassled by debt collectors on the telephone and in the mail, it’s a sign that your financial position is deteriorating and you ought to make some changes. When you’re being contacted by debt collectors, it means that your creditors have sold your debts at heavily discounted rates to debt collectors because they believe that you aren’t in a position to settle these debts in a reasonable period of time. This is a clear indicator that you should seriously look at declaring bankruptcy as it’s probably the best option for both your finances and your psychological well-being.
While there are some severe financial consequences, bankruptcy isn’t the end of the world and in many cases, it’s the first step to financial freedom. When you’re enduring a mountain of debt and you can’t see any way of recovering in the near future, it’s time to seek professional advice to determine what options you have. While there are many options available to help you in financial hardship, if you’re familiar with any of these warning signs then chances are that bankruptcy is the best alternative to ensure you and your family can secure a bright future. In any case, if you’re facing financial difficulties, it’s best to get in touch with bankruptcy professionals sooner rather than later. For a confidential discussion concerning your financial scenario, contact Liquidation Service on 1300 795 575 or visit www.liquidationservice.com.au
Providing food for your family is necessary and the costs of doing so can fluctuate extensively depending upon your mood, financial position, and whether or not you’re hungry when you visit the supermarket! But the fact is that food is a large expense for a lot of families, and seeking out ways to save at the supermarket can amount to a great deal of money with time. You might even be able to take the family on a vacation with all the money you can save on groceries throughout the year if you spend your money intelligently. All of us wish we could save more money on groceries, so here’s a simple guide on some helpful tips on how to do exactly that.
Plan Your Meals
It’s typical for people to head to the supermarket with a list of items they need, but hardly ever do they plan each meal of the week and all the ingredients that are needed. Planning your meals and ingredients ahead of time will help you to spend your money only on what is required. In doing so, you’ll also need to know what you currently have at in the pantry, so it’s a clever idea to make use of the items you already have in preparing your meals for the week. There are also some meals that are noticeably cheaper than others, so if you really wish to save money, favour meals that are inexpensive but satisfying. You can discover an abundance of cheap meal menus on the internet. It’s also a good idea to have a paper and pen in the kitchen so when you run out of a certain ingredient, note it down immediately so you remember the next time you’re at the supermarket.
Don’t Go To The Grocery store When You’re Hungry!
It’s essential that you always eat some food prior to going to the supermarket for your weekly shopping. If you’ve ever been to the grocery store when you’re hungry, you’ll know what I mean! In my experience, I start salivating when I find foods that I like but don’t really need and naturally, they wind up in my shopping trolley. Even if you’ve planned your meals for the week and have a list with you, sometimes the temptations are overpowering and can cause you to spend additional money on unneeded items.
Use Loyalty Cards
An excellent way to save money on groceries is to use loyalty cards at the checkout. Frequently, you’ll get a discount on specific items that aren’t displayed and you’ll also obtain points which could be used either by buying a gift card or various other featured items. In any case, you’ll be saving money that would otherwise be going down the drain!
There are many substitutes for the same kind of food so it’s crucial that you devote some time analysing the prices to make sure you get the best value for money. You don’t always have to buy the ‘no frills’ brands, but supermarkets will routinely have sales on a range of items so it’s necessary to do your homework. Along with this, whenever there’s a sale on a specific item, it’s always a fantastic idea to stock up when the prices are at their lowest. You’ll also want to review the prices of your most often used foods at different supermarkets to figure out which items are cheaper. It might be the case where you travel to two supermarkets when undertaking your weekly shopping expedition, but the price savings are well worth it.
Shop In The Evening
I know it sounds challenging particularly after a long day at the workplace, but shopping in the evening is the best time to find discounts. Perishable goods like fruits and vegetables and bakery items are normally discounted if there is too much inventory for the next day. The best part is that these items are almost as good as new except cheaper! You’ll be surprised with the amount of discounts you’ll discover at the supermarket if you go shopping in the evening.
So there you have it folks! There’s lots of ways to save money on food and the above recommendations are really just scratching the surface. If you’re able to save $20 a week on groceries, which is very plausible, you’ll be saving over $1,000 in the year! On the contrary, if you’ve tried all of the above ideas and are still struggling to find enough money, it might be best to seek professional advice regarding your financial situation. If this is the case, contact Liquidation Service on 1300 795 575 or visit their website for additional information: www.liquidationservice.com.au
Everybody loves money, especially spending it! Getting new toys or new clothes that make you look and feel great is important for your confidence and self-esteem. But how do you know if you’re good with money or not? Even if you get paid plenty of money doesn’t mean you’re good with it. There are a lot of successful people who have serious problems with money solely because they weren’t familiar with the warning signs. In this day and age, it’s imperative to be money conscious so here are five signs that you might have problems with money which can subsequently lead to serious financial problems in the future.
You don’t have any savings
A lot of us get complacent with our lifestyles – our car, our house, our jobs – and forget that things can actually go wrong and every person needs some financial insulation for rainy days. Without having any savings in the bank, what will cover you from incidents such as hospitalisation, job loss or car accidents? If you’re living paycheque to paycheque, all it takes is one financial hit and you’ll be in a world of pain. You’ll need to get a short-term, high interest loan which will just intensify the problem – you can’t save any money now so how will you repay an extra expense? While it’s easy to overlook, having no savings is a recipe for disaster and you should take action now before it’s too late. Most financial advisors advise having three to six months of living expenses in an emergency fund.
You don’t know where your money goes
Being good with money means that you know when and how much money you receive, and where it goes when you spend it. If you have no idea where your money is being spent, it signifies a lack of care and respect for your hard-earned cash, and can unquestionably trigger financial problems down the track. Try making a budget and actively abiding by it. This will aid you in having a better awareness of your finances so you can understand how much of your money is being drained on unneeded items. After a month or so, reward yourself for sticking to your budget and you’ll appreciate spending money on yourself a whole lot more.
Making minimum repayments only
If you can only afford to make the minimum repayments on your loans, particularly credit cards, then you’re heading for financial problems. It can take years, even decades, to get rid of a credit card debt by only making minimum repayments. Meanwhile, interest rates will be eating away all your prospective savings while you’re ultimately just treading water. If this seems familiar, it’s time to make a change and quickly. You need to get your priorities straight by creating a plan, following a budget, and saving as much money as possible to pay off your outstanding debts.
Spending more than you earn
The most evident sign of money issues is where your spending eclipses your earnings. Regardless of whether you have a healthy savings account, you should always ensure that your income is greater than your expenses, it’s just simple maths really. If you get into a bad habit of spending far too much, it can come to be addictive and cause even more issues, in addition to likely financial difficulties. Many people try to mask this problem by paying bills with their credit cards which just makes the situation worse in the long-term. Do you even know if your earnings is higher than your spending? If you’re unsure, it’s probably a good time to find out and make some modifications.
You have new clothes in your wardrobe that you don’t use
An easy way to assess if you have money problems is to search through your wardrobe. Do you have clothes that still have the tag on them? Everybody loves a sale, and it’s a great way to save money when cash is tight and you need something. But purchasing clothes just because they’re on sale may indicate that you have money troubles. If this is the case, you may also be inclined to buy other items simply because they’re on sale too. Purchasing unneeded items under the impression that you’re saving money is something that will need to be fixed.
Regardless of how much you get paid, if you’re not good with money then now is the time to modify your habits to stay away from potential issues in the future. If any of these warning signs sound familiar to you, it may reveal that you have problems with money and should seek advice before it’s too late. All it takes is one financial blow and you’ll be drawn into the financial abyss. To find out what options you have, or to talk to someone about your finances, contact Liquidation Service on 1300 795 575 or visit http://www.liquidationservice.com.au
There’s no doubt that are some heavy financial repercussions in declaring bankruptcy, and there’s no question that your life will experience some significant changes. If you’re in this situation, don’t be alarmed. The difficult economic times experienced today means that an increasing number of individuals are declaring bankruptcy. In fact, there are as much as 20,000 Australians each year that file for bankruptcy. So rest assured, you’re not alone.
Rather than dwelling on the past, it’s critical that you look towards the future and attempt to recover as best as possible. Bankruptcy doesn’t mean the end of the world, it just means that some adjustments need to be made to secure a bright future for you and your family. So here are a number of simple strategies that you can use to best recover after declaring bankruptcy.
It’s common for those who declare bankruptcy to feel emotions of failure, self-loathing and guilt. Though it may seem natural have these feelings, being bankrupt is the result of just another mistake that we all make as humans. You need to stop punishing yourself and look towards the future. Bankruptcy is the first step towards financial freedom, and recovering from a bad credit rating is easier than you think. The longer you give in to these negative feelings, the longer it will take to recover. Dealing with your financial difficulties is the first step in overcoming them, so you’re actually in a better position than you were prior to declaring bankruptcy.
It’s vital that you take a look at the reasons why you became bankrupt to make sure that you don’t make the same mistakes again. Filing for bankruptcy offers you a second chance to get your finances in order, so it’s best you make the most of it. Although there’s probably a number of reasons why you filed for bankruptcy, all of them probably pertain to poor spending and borrowing habits. So it’s a good idea to make a list of two or three things that led you to declaring bankruptcy and commit yourself to not making these oversights again.
Make a budget
After you’ve rebounded emotionally from bankruptcy, the next step is to make a realistic and achievable budget. You’ll need to review your earnings and expenses thoroughly, and work out a way to save money while still paying all of your living expenses. Even if it means that you downsize your house or forego some luxury items, becoming financially healthy is your leading priority. There are some practical ways to save money, like eating at home as opposed to dining in restaurants and revoking your gym membership in favour of walking to work. Always remember to include in your budget an amount for unexpected expenses.
Pay your bills on time
The first step in repairing your bad credit rating is to make sure that you pay all your bills on time. Whilst this won’t boost your credit rating immediately, it will ensure that your credit rating doesn’t go down any further. You might prefer to set up automatic bill payments through your bank to ensure that you don’t miss any payments. This will demonstrate to lenders that you’re financially responsible, and the longer you do this, the better your credit rating will get. This is considered the single, most effective action you can take to restore your credit rating.
Increase your income
If you haven’t already got stable employment, now is the time to do so. Regular income over time will not only improve your credit rating but it will enable you to increase your liquid assets, presenting you with more options. If you’re in a situation where you can obtain a weekend job, you should seriously consider it. Or take a look at your hobbies and aim to discover a way to increase your income by doing something that you enjoy. Cash is king when you’re bankrupt so anyway to increase your income is a fantastic idea.
While filing for bankruptcy is never an easy decision, it is the very first step in dealing with your financial issues and learning from the past so you can enjoy financial freedom in the future. It’s important that you reflect on the reasons that triggered your financial hardships to ensure they don’t happen again. Steady employment and paying your bills on time will increase your credit rating eventually, and sticking to a budget is extremely important. If you’re considering filing for bankruptcy and need some advice on your options, reach out to Liquidation Service today on 1300 795 575 or visit www.liquidationservice.com.au