Australia’s Household debt currently stands at 127% of Australia’s GDP – what does that mean? It means that our household debt is currently more than everything the nation produces in a full year- a problem that in some way affects us all.
At these rates debt eats up a lot of people’s income with many Aussies being shackled by debts their entire adult life.
For any normal Aussie, the words “debt free” are often jokingly followed by “As soon as I win the Lotto” or “Once I strike Gold” knowing that it is often a pipe dream to think of yourself as Debt Free. However, there are many ways for you to make sure your debt remains under control.
House mortgages, credit cards, car loans, student loans, after pay, Pay Day Loans… the list of ways you can rack up credit seems endless and as you add new debts to the old ones, the viscous cycle just becomes more and more overwhelming. What do you do when it gets to the point where your debts are impossible to service? Some people simply stick their head in the ground but every time they come up for air the debts are even larger. Running away is never a good solution to dealing with your situation. You need to be proactive and be debt free.
Here’s some tips to help you move forward.
Avoid Debt
In an ideal world this would be the best option but who ever said we live in an ideal world. In fact, I once took a trip to the US and was told that I was simply unable to hire a car without a credit card. “I have a debit card” I told the service manager but he just looked at me and said “No, we must have a credit card or you cannot have the car.” I simply went without the car. Avoiding debts equals a debt free chart option lifestyle. There are a lot of things you can do to make the most of your money. For low-income earners, avoiding debt becomes more of a challenge but make sure that if you have to borrow money, the debt is serviceable.
How else can be debt free?
Here are some ideas to help you avoid the debt trap:
- Always pay with cash
- Set a budget and follow it. FOLLOW IT.
- When buying or grocery shopping, scout for the best prices.
- Do not fall for “good” deals like “buy now, pay later” schemes
- Pay on time to avoid overdue bills
- Minimize what you need to borrow
- Become financially literate…. Understand how money works
- Save and Keep an emergency cash stash
- Live below your means
- Always aim for the debt free chart option
- Ask yourself, do you really need it.
Manage Debt
This is often not as easy as it seems. Life sometimes throws us lemons and instead of making lemonade the lemons hit us in the head. It is a fact of life that bad times will come and a fact of life that sometimes we will make bad decisions.
Managing debt is possible if the debt is able to be managed. A budget is the answer but if you find that your outgoings outweigh your incomings and you are simply overwhelmed with your debts then it is time to take some action to manage these debts in a different manner.
If you are at this stage you have probably asked yourself many times “What do I do from here? Do I declare myself Bankrupt? Do I get more credit to pay off my existing credit? Do I ask my family for money? Do I work even longer hours? Do I sell my car? Do I just run away from it all and hope they don’t find me?”
Can you rid yourself of debt and start again? Ask us if Bankruptcy is a debt free chart option for you and we can help you through the process. Living life free from debt is everyone’s hope and dream. Imagine the day you can wake up free from the harassing phone calls and nasty letters.
My Bankruptcy, Here to Help
Here at My Bankruptcy, we understand that it is vital to be in control of managing your debts. Our bankruptcy experts are dedicated to giving our clients the support they need. We can aid you to solve personal insolvency Australia issues.
My Bankruptcy has offices all across the country from Queensland, New South Wales, Australian Capital Territory, Victoria, South Australia, Western Australia, and the Northern Territory. We provide debt free chart options. Call us now on 1300 255 059 or email us at steve@mybankruptcy.net.au. Start your debt-free life today with My Bankruptcy.