Author: admin

What You Need to Understand About Debt Agreements

Many Australians encounter financial problems during their lifetime, and this is generally considered a typical fluctuation in our finances. But what if you’re unable to work through these challenges yourself, but at the same time, you don’t want to file for bankruptcy?

 

Debt consolidation loans are a customary solution that relieves individuals of financial stress by consolidating all their current debts into one easy to manage loan that’s payable each month. On the other hand, debt agreements are another option available to individuals in financial hardship, and this will be the focus of today’s article.

 

What is a debt agreement?

A debt agreement is fundamentally a legal contract between you and your lenders which comprises Part IX of the Bankruptcy Act 1966. Under this agreement, your lenders allow you to pay off a sum of money that you can afford, over an agreed period of time, to settle your debts.

 

It is crucial to note, however, that entering a debt agreement is an ‘act of bankruptcy’ and has long-term financial consequences which may impact your ability to obtain credit down the road. As a result, it’s strongly recommended that folks seek independent financial advice before making this decision to make sure this is the best alternative for their financial situation and they clearly recognise the repercussions of such agreements.

 

Before entering a debt agreement

There are certain things one should take into account before entering into a debt agreement. Speaking with your financial institutions about your financial predicament is always the first step you should take to try to clear up your debts outside of a debt agreement. Have you talked to your creditors and asked them for extra time to repay your debt? Have you already attempted to arrange a repayment plan or a smaller payment to repay your debt?

 

What types of debts are included in debt agreements?

Debt agreements are designed to assist low income earners who are unable to pay unsecured debts. Not all types of debt are covered in debt agreements, such as the following:

  •  Secured debt – such as home mortgages where the property can be sold to recoup money
  •  Joint debt – if you have a joint debt with an associate, lenders can demand that your partner repays the full amount if you’re unable to
  •  Foreign debt
  •  Other debts – such as debts incurred by fraud, court fines, student HECS or HELP debts, and child support

 

Are you eligible to enter a debt agreement?

To discover if you are qualified, just visit the Australian Financial Security Authority’s (AFSA) website (https://www.afsa.gov.au/insolvency/i-cant-pay-my-debts/am-i-eligible-debt-agreement).

 

If you determine that a debt agreement is the best alternative for you, a debt agreement administrator will assist you with your debt agreement proposals, based on what you can afford, and send this proposal to each of your creditors. If your creditors agree to the terms of your agreement, then your debt agreement will start, for example, paying 85% of your debts to creditors over a 3-year period.

 

Disadvantages of debt agreements

As stated earlier, debt agreements are an ‘act of bankruptcy’ and as a result, there are severe implications one must contemplate.

  •  If your financial institutions reject your debt agreement proposal, they can make an application to the courts for involuntary bankruptcy
  •  Your name will appear on the National Personal Insolvency Index (NPII) for 5 years from the date of your agreement, or 2 years after the end date, whichever is later
  •  Your debt agreement will be detailed on your credit report for up to five years, or longer in some circumstances
  •  You are legally required to alert a new lender of your debt agreement when acquiring a loan over $5,703.
  •  If you own a business trading under another name, you are legally required to reveal your debt agreement to any individual who deals with your business.
  •  If your job belongs to a regulated profession or a position of trust, it may have a bearing on your employment.

 

Choose your debt agreement administrator cautiously.

Debt agreement administrators play a key role in the success of your debt agreement, so always decide on an administrator that is registered with AFSA’s list of registered debt agreement administrators. Fees also vary widely between administrators, so always read the payment terms prior to making any decisions.

 

If you’re still unsure if a debt agreement is the right solution for you, get in touch with Bankruptcy Experts Bunbury on 1300 795 575 who can give you the right advice, the first time. To learn more, visit www.bankruptcyexpertsbunbury.com.au.

 

Tips on How to Resolve Your Financial Troubles

There’s no doubt that financial difficulties can lead to a lot of stress and anxiety in our lives. Repeatedly fretting about how you’re going to pay your bills not only makes you apprehensive, but also places stress on your relationships, your family, and your well-being. The fact is, stressing over money isn’t going to cure your financial challenges. If you’ve found yourself in a situation where you’re straining to make ends meet, here are the best ways to address your financial issues so you can live a worry-free life again.

 

List your monthly costs

The first step in managing your financial concerns is identify exactly where your pain points are. Whether you’re dealing with a large credit card debt, you’re attempting to increase your retirement savings, or you simply spend too much on eating in restaurants throughout the week, pinpointing the main causes of your financial issues will reveal to you which expenditures have to be prioritised so you can get your finances back on course. Grab a pen and paper and document your current monthly expenditures including food, bills, debt repayments, transport, tuition, and any other items you generally spend each month.

 

Cut down on your expenditures

Once you’ve got your monthly expenses in front of you, take a closer look and examine which expenses can be reduced and which can be severed altogether. Although your mortgage repayments naturally can’t be reduced, you can likely lower your food bill by only eating at home and even remove other entertainment expenses like cable TV. It’s pivotal that you are pragmatic about decreasing your expenses. Don’t forget, if you’re trying to address financial complications then you must make sacrifices to resolve them.

 

Put together a budget

Now that you’ve got your monthly expenditures written down without the unnecessary spending, you need to construct a budget. If you’re unfamiliar with developing a budget, there are a number of fantastic apps you can download on your mobile phone. Personally, I’ve found the Budget Planning app from ASIC to be very valuable: https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/budget-planner.

 

This will enable you to figure out how much money you have left every month by viewing your income and expenses. It’s paramount that you stick your budget. If you think that it could be too challenging to do this, add a miscellaneous item to your budget to give you some room to breathe, or perhaps a motivation item to reward yourself at the end of the month for following your budget.

 

Prioritise your debts

Some debts cause more pain than others, so to ease your financial strain as best as possible, aim to decrease your largest debts first. Not only will you be saving money by paying less interest, you’ll also feel far better about yourself. Only paying the minimum repayments on your credit card bill can sometimes take years to pay off, so aim to decrease these types of debts as quickly as possible. Don’t forget, you still have other fixed debts each month such as phone bills and electricity, so these need to be taken into account as well.

 

Still feeling the heat?

If you’ve cut down your expenses and developed a budget but still find that there’s not enough money to repay all your debts, you’ll have to find other income streams. Are you able to work a second job? Can you sell any costly household items that you can do without? Reaching out to family and friends is another practical way to try to address your problems. Whatever you do to get extra money, never get a personal loan from the bank to pay off your existing debt – this will only exacerbate an already stressful situation.

 

Seek financial advice

If the above steps haven’t relieved your financial pressure, it’s better to seek financial advice sooner instead of later. Depending on your individual situation, there are numerous choices available like debt consolidation loans or debt agreements which can assist those in need. Don’t fight your debts for years before seeking assistance, speak to Bankruptcy Experts Bunbury on 1300 795 575 or visit our website for more information: www.bankruptcyexpertsbunbury.com.au

 

Tips On How to Save Money on Your Electricity Bill this Winter

Personally, I find there’s nothing more discomforting than being cold. Coming from Queensland, I’m used to the stiffling sun and it doesn’t worry me much, but the cold hits me like a tonne of bricks! Like many of you, my electricity bill skyrockets during the cold weather and there’s a number of reasons why. Not only are we using heating products to keep us warm and comfortable, but the nights are longer so generally we use more lighting during winter.

 

With the prices of electricity currently soaring in Australia, this winter is the ideal time to make your house more energy efficient. Not only will you save plenty of money, but you’ll also lower your carbon footprint at the same time. Recent studies illustrate that during the cold season, electricity is the third highest expense behind rent and food, so to help you stay warm and save money, here’s how you can make your home more energy efficient this winter.

 

Rug up

One of the best ways to save money this winter is to dress for the occasion. Putting on lots of warm clothing and blankets is far cheaper than utilising electric heating. Even when you have central heating, change the temperature to a level which is ‘just’ comfortable and use clothing and blankets to fill the gap. You’ll acclimatise much faster than you think!

 

Heaters

Electric heaters are unquestionably the leading contributor to your electricity bill during winter. Instead, look into using a gas heater or a fireplace which have the advantage of warming rooms quicker than electric heaters but use far less electricity.

 

Lighting

With longer and darker nights, lighting is used much more often in winter without you even realising it. The lightbulbs you have set up in your residence make a substantial difference to your electricity bill, so think about switching any halogen lights for LEDs or CFLs which will save you hundreds of dollars during the course of the year.

 

Insulation

A reliable insulation system in your residence will not only keep you warmer in winter, but cooler in summer also. Depending on your home’s construction, you may have the opportunity to insulate your floors, walls, and roof. Although home insulation does entail upfront costs, the savings in electricity over the next 15 years will unquestionably offset it.

 

Windows

One place where heat escapes rapidly from your home are through your windows. The best approach is to get double glazing on your windows, but this can be relatively expensive so consider using thick drapes which will preserve most of the heat. When the warmer months gradually arrive, just replace your solid drapes for curtains which are more appropriate.

 

Get rid of drafts

One of the most practical ways to cut down on your electricity bill is to eradicate any drafts in your house. Any gaps in your windows and doors will make it possible for warm air to escape and cool air to enter. Look at adding caulking to your window surrounds and draft excluders to the bottom of your doorways.

 

Use some common sense

A bit of common sense goes a long way in making your home more energy efficient too. When cooking, leave your oven open for a few minutes when you’re done to heat up your kitchen and lounge. At the same time, don’t drain the hot water in your bath straight away. Closing doors to cold rooms when you’re not using them and shutting off heating units when you leave your home or go to sleep are all easy ways to minimise your electricity bill.

 

If you’re experiencing any financial trouble and finding it challenging to stay up to date with all your bills, it’s always best to seek financial guidance as quickly as possible. The sooner you act, the more choices are available to you, so if you need any help with your finances, speak to Bankruptcy Experts Bunbury on 1300 795 575. Alternatively, visit our website for more information: www.bankruptcyexpertsbunbury.com.au

 

Bankruptcy and Child Support – Everything You Have to Know

Filing for bankruptcy really isn’t the end of the world, but it does have severe repercussions that will impair your finances in the coming years. I’ve found that in most cases, focusing efforts on developing a bright future is the best way for folks to manage their bankruptcy and succeeding recovery. To do this, however, folks need to understand precisely what bankruptcy entails so they can successfully budget, plan, and rebuild their wealth in the most efficient way possible.

 

One of the most concerning questions I get asked relates to how bankruptcy will influence child support payments. Even though this topic may seem fairly straightforward, I’ve found that it causes a lot of misunderstanding so today we’re going to take a closer look and attempt to resolve some of that confusion.

 

Does bankruptcy cover child support debts?

Although bankruptcy releases you from a wide variety of debts, child support is not one of them. If you owe a sizable amount of money in child support when you file for bankruptcy, it will not be released in bankruptcy so it’s best to connect with the Department of Human Services (DHS) and discuss a repayment plan. If, for whatever reason, you think the assessment delivered by the DHS is inaccurate, you can challenge this.

 

How is child support measured?

The DHS is in charge of regulating and working with separated parents on child support assessments. To figure out how much child support you must pay, the DHS consider both your income and your care percentage of the children involved. By using your last tax return as a measure, the DHS will use these figures to figure out your estimated income for the forthcoming year. This showcases the value of keeping your tax returns up to date, and any adjustments to your circumstances should be reported to the DHS as quickly as possible.

 

Income contributions to your bankrupt estate

An income threshold is used to ascertain if a bankrupt person can afford to contribute some of their income to settle the debts in their bankrupt estate. Despite this, issues like the number of dependents, child support payments, income tax, salary sacrificing, and fringe benefits will have an effect on your income threshold. The following table features the related threshold limits as of September 2017:

 

The DHS define a dependent as anyone who lives with you most of the time and earns less than $3,539 yearly.

 

Assuming you earn over the income threshold, your trustee would figure out your income contributions to your bankruptcy estate with the following formula:.

 

(assessable income – income threshold amount) ÷ 2

 

As a result, every 50 cents you earn over your income threshold will be used to pay the debts in your bankrupt estate.

 

For instance, if you earn $110,000 yearly before tax, you’ll probably be paying close to $30,500 each year in tax. Your assessable income would therefore be roughly $79,500. Assuming you have no other income and no dependents live with you at home, your trustee would determine your bankruptcy payments as follows:.

 

($79,500 – $55,837.60) ÷ 2 = $11,831.20 (or around $986 each month).

 

Child support contributions.

Your child support contributions are deducted from your taxable income so the more child support you pay, the less money gets contributed to your bankruptcy estate. Using the previous example, if you are required to pay $15,000 in child support payments annually, your assessable income would be decreased from $79,500 (income after tax) to $64,500.

 

After presenting your trustee with a copy of your child support assessment from the DHS, your trustee would figure out your bankruptcy payments as follows:.

 

($64,500 – $55,837.60) ÷ 2 = $4,331.20 (or about $361 per month).

 

Summary

Although blending family law and bankruptcy can be slightly perplexing, there’s always somebody to assist you at Bankruptcy Experts Bunbury. If you have any additional questions relating to bankruptcy and child support payments, or you just need some friendly advice, get in touch with our team on 1300 795 575, or alternatively visit our website for additional information: www.bankruptcyexpertsbunbury.com.au

 

Top 5 Tips on How to File For Bankruptcy in Australia

Most Australian’s have only really considered bankruptcy when playing a game of Monopoly with their buddies! In spite of this, there are an estimated 13,000 individuals that file for bankruptcy yearly in Australia. It’s uncanny how fast individuals can go from experiencing a balanced financial position to grappling a mountain of debt. Commonly, situations like loss of work, divorce, or unforeseen medical expenditures will trigger serious financial issues within just a few months. As opposed to wrestling with these debts for several years and ignoring the elephant in the room, it’s much better to cut your losses and seek financial guidance as soon as possible.

A few months ago, the Australian Government proposed changes to bankruptcy laws that lower the bankruptcy period from 3 years to 1 year. If this bill is passed, it will have a significant impact on the stigma associated with bankruptcy and the financial penalties that bankrupts will face in the future. While most people understand the idea of bankruptcy, lots of people wouldn’t know where to start if they determined that declaring bankruptcy is the best alternative for them. To offer some insight, here are the top 5 tips on how to declare bankruptcy in Australia.

  1. Get advice from a registered bankruptcy trustee

If you’ve decided that bankruptcy is the best option for you, always speak to a registered bankruptcy trustee prior to making any concrete decisions. There is a significant difference between a firm that charges you to declare bankruptcy and a legally registered bankruptcy trustee firm. In many cases, bankruptcy firms are not the same as registered bankruptcy trustee firms, so ensure you get the right advice the first time so you can make the best financial decision. The right advice will not only aid you with your decision-making, but also put you in the best position to make a full recovery after you have been discharged.

  1. Download the forms required to declare bankruptcy

If you’ve made the decision that bankruptcy is the best solution for your individual position, there are two sets of documents that you will need to complete if you want to file for bankruptcy:

  • The Debtor’s Petition, which is a 3 page document (visit this site to download: https://www.afsa.gov.au/insolvency/how-we-can-help/forms-list/debtors-petition).
  • The Statement of Affairs, which is a 25 page document (click on this link to download: https://www.afsa.gov.au/insolvency/how-we-can-help/forms-list/statement-affairs).
  1. Compile your supporting documents.

In nearly all bankruptcy proceedings, individuals need to offer evidence that their claims are accurate by supplying a variety of supporting documents. Generally, this will include the following:

  •  Income statements and personal tax returns
  •  Company tax returns (if you are a company owner)
  •  Centrelink benefits statement (if relevant)
  •  Formal child support notices
  •  Any family law orders
  •  Any court orders
  •  Wills of any deceased estate of which you are the beneficiary
  •  All transaction statements from transferred assets over the last 5 years

It is essential to note that failing to deliver accurate information or any effort to hide information that would otherwise relate to your bankruptcy case is a severe offence that is punishable in a criminal court.

  1. Complete the bankruptcy paperwork.

You must answer each and every question in your bankruptcy paperwork accurately and truthfully to ensure it gets processed effectively. It is crucial that you include the address details of all your creditors in the secured and unsecured sections of the bankruptcy paperwork. In the Debtor’s Petition, you’ll need to provide at least two types of ID. If you’re unsure of which forms of ID are accepted, check the AFSA website (https://www.afsa.gov.au). If you run out of space when answering any questions, simply print out another copy of the same page and use it to fill out extra information. Additionally, be careful to include all assets sold in the last 5 years in question 33.

  1. Submit your bankruptcy paperwork.

Before you lodge your bankruptcy paperwork, inspect the date to make sure you are lodging it within 28 days of you signing it. At Bankruptcy Experts Bunbury, we understand that all the paperwork can be a bit over-bearing, so if you have any concerns regarding your any of your answers, it’s best to phone us on 1300 795 575 to ensure you get it right the first time. Alternatively, visit our website for additional information: www.bankruptcyexpertsbunbury.com.au.

 

Top 3 Reasons For Personal Bankruptcy in Australia

Nobody likes to look into bankruptcy, which is easy to understand given that bankruptcy will alter your financial circumstance for years to come. This may be one of the reasons why individuals don’t look for financial assistance in times of need, because they are under the typical misconception that bankruptcy is the only way to address their financial concerns. Sadly, this isn’t the case as there are many choices available to those dealing with financial difficulties. What lots of people don’t know is the sooner they act, the more possibilities will be generally be available to them.

In Australia, personal bankruptcies are on the upswing again, with the September 2017 quarter marking an 8% surge in the amount of bankruptcies cases than the previous year. In fact, the September 2017 quarter was the ninth continuous quarter in which the amount of debt agreements increased. Like me, you may be wondering why?

Well, the economy is doing fine with interest rates still at an all-time low and unemployment steady at 5.6% as of February 2018. Although the unemployment statistics aren’t optimal, it’s floating around average levels which undoubtedly wouldn’t induce an 8% increase in the amount of personal bankruptcies. So, just what has caused 4,236 people to declare bankruptcy in the September 2017 quarter?

If you’re grappling any financial distress, understanding the top causes of personal bankruptcy will give you awareness into what components of your finances you need to prioritise. Our world is shifting rapidly and detecting new risks in your own financial scenario will help you to proactively manage them. To give you some insight, here are the top three causes of personal bankruptcy in Australia in 2017.

Excessive use of credit

The primary cause of bankruptcy in Australia today results from excessive use of credit. This is notable, given that it is the very first time since data collection began in 2007-08 that excessive use of credit has superseded unemployment as the primary cause of personal bankruptcy.

Clearly, this is an ongoing issue that ought to be addressed. Banks charge extravagant fees and interest charges for late credit card repayments, so if you’re already overdue in your credit card repayments, do something about it now. The Government’s MoneySmart website (https://www.moneysmart.gov.au) has loads of online resources that can assist those with credit card troubles. Seeking financial guidance is highly encouraged to show individuals how to plan and follow a budget.

Unemployment

Unemployment or loss of income continues to be one of the most contributing elements of personal bankruptcy. This comes as no surprise because many Australian’s don’t have income insurance or an emergency fund which they can use if they endure an unforeseen termination or resignation. With unemployment rates currently at 5.6%, this leaves many Australians without a steady flow of income and relying only on Centrelink payments to continue being solvent. The best way to manage an unforeseen loss of income is to be prepared, which showcases the importance of putting together an emergency fund that can assist you and your family for 3 to 6 months.

Relationship breakdowns

The third leading cause of personal bankruptcies in Australia stems from relationship breakdowns. Divorce rates are progressively increasing, with the ABS recording 46,604 divorces in 2016. Even though divorces are not uncommon, financial problems resulting from divorces are common given the associated legal fees, child support, and the rapid transition into a one-income household. Many folks find themselves inheriting debts from their partners or are unable to pay off existing credit because their costs have dramatically increased.

Looking ahead

Irrespective of the reasons for your financial challenges, the fact remains that the sooner you seek financial help, the more opportunities will usually be available to you to resolve these issues. Lots of individuals wrestle with debt for years before seeking help. If you’re juggling your finances and avoiding phone calls, don’t wait any longer. Get in touch with the specialists at Bankruptcy Experts Bunbury on 1300 795 575, or alternatively visit our website for additional information: Bankruptcy Bunbury

 

The Difference Between Good Debt and Bad Debt – What You Need To Know

For most Australian adults, debt is a part of our everyday lives. Whether or not you intend to advance your skills by obtaining a degree, invest in a house for your family, or purchase a vehicle so your family has transport, securing a loan is very common simply because we don’t have enough money to pay for these expenditures upfront. It seems that most people secures a loan at one point or another, so what’s the issue?

The issue is that a lot of people don’t realise the difference between good debt and bad debt, and consequently, they take on too much bad debt which can lead to major financial problems in the coming years. Not all loans are created equal, and typically you’ll discover an enormous difference between your credit card interest rates and your mortgage interest rates. As time go on, your credit report will have a considerable impact on your borrowing abilities, so paying your bills on time and not defaulting on any loans is critical, alongside keeping a healthy balance between good debt and bad debt.

Each time you apply for credit, your creditor will check your credit report to assess your financial history and then make a decision whether they’ll authorise your loan. Too much bad debt on your credit report will be viewed detrimentally by lending institutions, as it reveals poor financial decisions and behaviours. To make certain that you maintain healthy financial practices, it’s important that you are aware of the difference between good debt and bad debt.

What’s the difference?

The difference between good debt and bad debt is pretty straightforward. Good debt is frequently an investment that will increase in value in time and will assist you in constructing wealth or providing long-term income. On the other hand, bad debt usually decreases in value quickly and does not add any value to your wealth or create a long-term return. To give you some insight, the following provides some examples of each of these types of debts.

Property

The price of land has historically increased in time, so acquiring a mortgage is considered a good debt because the value of your land will increase with time. At the same time, mortgages commonly have low interest rates and a long term, normally 20 to 30 years, which illustrates that the value of your property can double or triple during the life of your loan.

Stock exchange

Securing a loan to invest in the stock exchange is also regarded as good debt considering that the returns on the stock market are traditionally favourable. Financial institutions typically view stock exchange loans as good debt because you are trying to enhance your wealth over time through a stable investment. Be careful though, it’s not a good idea to invest in the stock market unless you have an acceptable amount of knowledge.

Education

Another type of good debt is investing in your education, whether it be university or a trade, considering that it enhances your skills and your ability to earn a higher income down the road. In Australia, the interest on HECS loans are equal to inflation which clearly makes them a very enticing option.

Credit cards

Credit cards are ordinarily the worst type of debt an individual can have. Credit card debts demonstrates to lending institutions that you have poor financial habits because the interest rates are exceedingly high and you have nothing in value to show for your investment. People with credit card debts generally have challenges in obtaining future credit from lenders.

Vehicles and consumer goods

Another type of bad debt is loans for vehicles and other consumer goods. When you obtain a loan to purchase a car, it instantly decreases in value when you drive it out of the car dealership. The same applies to consumer goods like flat screen TVs, because you are basically paying interest for something that depreciates in value very fast.

Borrowing to repay debt

If you find yourself in a position where you need to get a loan to repay existing debt, it’s best to seek financial assistance as quickly as possible. This type of borrowing will only bring on further money problems, and the sooner you act, the more solutions will be available to you to resolve the issue. If you find yourself facing a mountain of debt, speak to the professionals at Bankruptcy Experts Bunbury on 1300 795 575, or alternatively visit our website for further information: Bankruptcy Bunbury

 

Best Ways to Repair a Poor Credit Report

Whether we acknowledge it or not, our credit report has a considerable effect on our lives. It’s kind of like our health; we don’t treasure good health until we lose it. Most people don’t even find out they have a poor credit report until they make an application for a personal line of credit and it’s disapproved. It can come as quite a surprise to some, considering that even one missed payment that is documented by your financial institution can remain on your credit report for up to seven years.

So, what is a credit report? A credit report is a report that specifies information about your financial history with financial institutions. In recent times, credit reports have been redesigned to place greater importance on favourable history such as paying your bills on time, but overwhelmingly, credit reports are used by financial institutions to examine your capability to repay debts by assessing your past behaviour.

When lenders check your credit report, you generally either get a pass or fail so any default irrespective of its severity can have a long-lasting impact on your financial opportunities for years to come. Although finding solutions to repair a poor credit report can be tough, there are a number of things you can do to strengthen it. The good news is, we’ve assembled a list of ideas that you can try to boost your credit report and your general financial health.

Review your credit report for any errors

The first step is to examine your credit report to find out exactly what it features. You can do this by paying a small fee to an agency like ‘Check My Credit File’ (https://www.mycreditfile.com.au). It’s not rare for oversights to be made on credit reports which can have a damaging impact on your financial capabilities. Read your credit report meticulously and challenge any errors that you find to make sure your credit report appropriately mirrors your financial history. Some common mistakes that can occur are:

  •  Mistakes in personal details
  •  Wrongful defaults and judgements
  •  Old defaults and judgements
  •  Inaccurate information regarding your credit history

If you discover any errors, advise the credit reporting agency in writing so these listings can be altered or removed to reflect your true credit history.

Pay your bills on time

Individuals underestimate how important it is to pay your bills on time. Sometimes, individuals can be forgetful considering that they have too many bills to pay, so it’s a smart idea to contact all your lenders and ask them to automatically debit your bank account each month. Ordinarily, your lenders would be more than happy to do this as delivering paper statements is time-consuming and expensive. By placing all your bills on autopilot, you can be certain that they’ll be paid in full and on time, which will have a positive effect on your credit report

Add extra information to your credit report

There are specific details throughout your credit report which creditors will view favourably. For instance, if you are married, have been employed by the same employer for more than two years, or you are a homeowner, then this information will improve your credit report. Creditors normally view this information in a positive light and it can assist in future credit applications. If you see that this sort of information is missing from your credit report, notify the credit reporting agency and ask that it be included.

Avoid too many credit applications

Each time you make an application for a line of credit, it is mentioned on your credit report. Naturally, excessive applications for credit will have an adverse effect on your credit report and the way in which lenders view your financial behaviours. It is vital that you are prudent and selective when applying for credit and only apply when you are optimistic it will be approved. Also, if you recently had a credit application rejected, wait a decent amount of time before applying again.

Take into consideration a debt consolidation loan

Generally, it can be very difficult to control your debts when then you have lots of them. Neglecting just one debt repayment can become a default, which will stay on your credit report for a minimum of five years. Look into a single debt consolidation loan which will accumulate all your debts into one, single, monthly repayment. Typically, interest rates on debt consolidation loans are fairly low, and you’ll eliminate any further defaults which will have a positive impact on your credit report. If you’re interested in a debt consolidation loan, get in contact with our friendly team at Bankruptcy Experts Bunbury on 1300 795 575, or alternatively visit our website for further information: www.bankruptcyexpertsbunbury.com.au

 

Weddings On A Budget – Ways To Save Money When Getting Married

We all have a fairly good understanding that weddings can be a costly exercise, but do you really understand how much the average wedding costs in Australia? A bit over $36,000, according to Australia’s Money Smart website. And that was in 2012! Today, it’s quite possibly somewhere around the $50,000 mark. I guess if you have well-off parents it wouldn’t be a problem, but unfortunately the majority of us don’t.

Let’s admit it, $50,000 is a huge amount of money! You could purchase a business, put a down payment on a new house, repay your student loans, or maybe travel the world! The reality is though, weddings are a celebration of two people who commit to spending the rest of their lives with each other. Sure, we ‘d all want to have the wedding of our dreams, but we shouldn’t forget what’s really important.

Although I’ve never married personally, I have a close circle of friends, and two of them managed to pull off the most splendid weddings on a shoestring. Obviously, it didn’t involve classy bridesmaid parties and catering for 500 guests, but it was intimate, unique, and everybody who came had the time of their lives. If you’re about to get married on a budget and trying to find ways to save money, then here’s how.

Location

There’s numerous ways to save thousands of dollars on your wedding location. One of the most gorgeous weddings I was invited to was in the garden of a friend’s home. Other options you could consider is hiring a community park for the day, or even the beach. The atmosphere is magnificent, you can customise your wedding to precisely how you want it, and the costs are exceptionally low. If you make the decision to have your wedding in a public place, just remember to consult the local council and make reservations well in advance.

Wedding Date

Although most people prefer their weddings on a Saturday, the costs of venues are far more costly on Saturday than any other day of the week. Contemplate having your wedding on a Friday or Sunday where Monday is a public holiday. The time of year will similarly have a significant effect on the cost of your venue. If you’re dead-set on having your reception in an indoor location, then schedule your wedding date in winter and you’ll save roughly a third of the costs for venue hire itself.

Photography

The cost of a professional photographer will normally cost roughly $4,000 for the entire day. With the impressive specs of smartphone cameras these days, contemplate hiring a professional photographer just for the formalities and ask your friends to take pictures throughout the duration of your wedding. You can make a hashtag on Twitter and get your friends to upload their pictures, ensuring that there’ll be lots of natural photos that resonate the true spirit of your special day.

Food & Drinks

If you really wish to save money, then catering firms are your top target! They charge outrageous prices and aren’t really necessary at all. Contemplate arranging your own food and drinks and don’t hesitate to go against the grain here.

You could hire a wood fire pizza truck that serves gourmet pizza, or look at hiring somebody to roast a whole pig in the ground and make the sides by yourself. For me, there’s nothing better than a pulled pork burger with mouth watering sauce and cheesy smashed potatoes! Don’t forget that most of the time, being original is much more memorable than being conventional. Moreover, search for a venue that enables you to bring your own alcohol. You’ll save a bundle of money this way, and you’ll be able to arrange a sizeable discount when buying in bulk.

Don’t Borrow Money

It’s not unusual for people to borrow money to cover their weddings, not grasping how tough it can be to repay. Not only will you be paying for the wedding itself, but also interest on top of that, which can sometimes take years to repay. If you’ve had an extravagant wedding and found yourself in financial distress, always seek financial help sooner rather than later. The sooner you take action, the more choices will be available. For any financial guidance regarding your personal circumstances, call Bankruptcy Experts Bunbury on 1300 795 575, or visit our website for additional information: Bankruptcy Bunbury

Personal Finance Tips – Financial Goals In Your 30’s.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

There’s no doubt that reaching your 30’s is a considerable landmark for all of us. While some of us may have bought a house, started a family, or even begun a new career, this decade of our lives has a significant financial impact for the years to come. For the majority of individuals, our financial commitments have perhaps grown and accommodating expenses and responsibilities with saving money for the future is more challenging than ever before.

The majority of us have dusted off the mistakes of our 20’s and learned a thing or two, however this decade of our lives is the time when we really should mature and genuinely think about our financial circumstances. We need to prioritise commitments, like our kid’s education and retirement savings, and take the most appropriate steps to obtain a prosperous financial future for you and your loved ones. Life can undoubtedly get more complex in your 30’s, however by concentrating on a few key aspects of your finances, your money doesn’t have to be nearly as complicated.

By making slight lifestyle changes, you can dramatically enhance your financial circumstance now and in the decades to follow, so here are some personal financial goals that everyone in their 30’s should contemplate.

Strengthen your emergency fund
Ideally you launched an emergency fund in 20’s, saving enough funds for several months’ worth of expenditures. This is a wonderful goal to accomplish in your 20’s, but making more money and having increased financial obligations in your 30’s signifies that your emergency fund becomes increasingly important. Finance specialists stongly advise that individuals in their 30’s should have at least 6 to 12 months of living expenses saved in their emergency fund. Don’t forget, moving back in with your parents is far more problematic in your 30’s, particularly if you’re a parent yourself.

Evaluate your insurance plans
Often, people’s circumstances change dramatically in their 30’s. You may have bought your first house, a new vehicle, or have started a family, so it’s necessary that you review your insurance policies so they’re up-to-date. It’s additionally a smart idea to have a look at income protection and life insurance combined with your current insurance plans. Even if your personal situation hasn’t changed in your 30’s, you should nevertheless assess your insurance policies several times a year to be sure you’re getting the best rates and premiums.

Boost your retirement savings.
Now is the time where you should start growing your retirement contributions, specifically if your employer features a salary sacrifice plan. Making voluntary super contributions is a terrific way to grow your nest egg, so if you receive a pay rise, look into using the supplementary income towards your retirement savings. As well as this, if you begin a new career or job, always see to it that use the same super account which will markedly reduce costs and maximise your retirement growth.

Live well below your means.
When you find yourself having more financial obligations, you should examine your budget and make sure you’re living well below your means. The key to improving your wealth is to increase the gap between what you earn and what you spend. You’ll likely need to decrease some expenses like eating in restaurants or cable television subscriptions, but the more money you save, the quicker you’ll accomplish your financial goals. It’s also recommended to look at percentage of income saved as opposed to dollar amounts, as this makes it much easier to ascertain which expenses can be minimised to ensure you’re always saving more than you earn.

Seek financial help sooner rather than later.
If you’re finding it difficult to meet mortgage repayments on time or you’re plunging deeper into debt, seek financial assistance immediately. Normally, the sooner you do something about it, the more choices will be available to you. Many people suffer financially for years before seeking help, and not only are they in a far worse position, but it is also completely unnecessary! There are many options available for those in financial difficulties, so if you require any financial help, talk with Bankruptcy Experts Bunbury on 1300 795 575, or visit our website for additional information: www.bankruptcyexpertsbunbury.com.au