Our Articles, Knowledge and News about Debt Reduction
Here you'll find more helpful information about debt reduction for business debt, personal debt, credit card debt and medical debt as we share our knowledge and experience.
Crack Your Credit Card Debt Cycle
An easy guide to freedom from credit card debt Paying off credit card debt can seem like an insurmountable task. You seem to be making headway on that dratted balance and then, before you know it, your fridge dies or it’s Christmas time again and that balance starts to creep back up there again. If this sounds like you and you want to break out of this endless cycle, there are steps you can take to get those cards paid off so you can breathe again. Like anything, with a bit of simple planning and discipline, it is completely possible to pay your cards off. Making your plan clear and achievable is going to sure up your success so let’s talk about what you can do.
Posted on 12 nov 2019
What is Debt-to-income Ratio and how it impacts you
If you want to manage your money responsibly, you probably already know that you should review your finances at least once a month. You might check your bank account for unauthorised charges and make sure your bills are all paid. But you may not have a complete picture of your finances if you aren’t reviewing your Debt-to-income and Loan-to-income ratio along with all of these other factors. Debt-to-income ratio (DTI) tells you what percent of your monthly income goes towards paying your debts. Loan-to-income ratio (LTI) correlates your gross annual wage to your total debt load. If you have applied for a new mortgage or loan recently, you may already know that your DTI & LTI ratio played a role in whether or not you got the loan you wanted. You may also know that a high ratio makes it harder to get a loan.
Posted on 29 oct 2019
3 mistakes that kill broker businesses
Running a successful brokering firm comes with its own challenges and hurdles. Upwards of 35% of brokers close their doors within 12 months of starting their business, and over 60% of SME’s in general, will close their doors within 3 years due to financial hardship. Sobering statistics. There are a lot of perks to being your own boss including being able to dictate your own hours, make the money equal to your ambition and of course, not having to answer to anyone. But all of these perks do not come without hard work and determination.
Posted on 14 oct 2019
How to debt proof your children
Childhood is a time of learning and discovery. A lot of our core beliefs and habits are formed during our younger years including the way we think about/handle money and spending. We grew up with the knowledge of our parents earning salaries, paying mortgages, moaning about debts and of course, paying us pocket money. The way we think about and spend our money, is shaped before it’s even something we are conscious of. We went to school and we learned about Shakespeare, Pythagorean theorems and how to work out the square root of things but there was no specific class to teach us about money management until we reach secondary education and by then, our habits and feelings about money have been formed.
Posted on 23 sep 2019
More Are Retiring With High Mortgage Debts
The number of mature age Australians carrying mortgage debt into retirement is soaring. And on average each mature age Australian with a mortgage debt owes much more relative to their income than 25 years ago. Microdata from the Bureau of Statistics survey of income and housing shows an increase in the proportion of homeowners owing money on mortgages across every home-owning age group between 1990 and 2015. The sharpest increase is among homeowners approaching retirement.
Posted on 21 aug 2019
Afterpay; Financial Angel or Debt Devil?
Afterpay has grown in popularity and availability in the last few years with many companies offering this payment option either online or in store. Afterpay gives you the ability to buy your item immediately but pay only a quarter of the cost up front. The remaining payments are spread over the next 6 weeks, so it makes buying larger tickets items and full shopping carts much more appealing but is it all it is cracked up to be? Let’s talk about the pros and cons of afterpay for you, the consumer.
Posted on 13 aug 2019
BOOST YOUR CREDIT SCORE IN 5 SIMPLE STEPS
What is your Credit Score? If you have applied for any kind of credit in your life, you should be familiar with the concept of credit scoring. According to ASIC, “your credit score is a number based on an analysis of your credit file, at a particular point in time, that helps a lender determine your creditworthiness. It is used by credit providers, such as banks and credit unions, to help them decide whether to lend you money, how much they will lend you and may sometimes influence what interest rate is offered to you.” To put it simply, your credit score determines if you are a worthwhile risk to loan money to or not.
Posted on 15 jul 2019
4 EFFECTIVE WAYS TO DEAL WITH MORTGAGE ARREARS
It’s not uncommon for homeowners to encounter financial difficulty at some point in the life of their mortgage. According to Business Insider, at the start of 2018, there was a sharp spike in the percentage of customers who went into arrears on their mortgage in Australia, with WA recording the highest increase in the country. January is a common month for this to occur as it follows the festive season; a time when over-spending seems justified, but last year, the numbers were much higher than usual. The point is, mortgage arrears happen, and they happen to the best of us. Thankfully, there are ways to handle it if you ever find yourself in this unfortunate situation. Here are 4 of the best ways to deal with mortgage arrears.
Posted on 4 jul 2019
What Happens When You Don't Pay Your Credit Card?
Missing a credit card or personal loan payment here or there is not uncommon and is often fairly easily rectified. Whether you have simply forgotten, you lack a budget, or you have had a tight month financially, missing the odd payment happens. So, what happens when you miss a few payments in succession or stop paying your credit card altogether?
Posted on 30 apr 2019
How banks collect on their bad debts
The incidence of bad debt on personal loans and credit cards are on the rise. With the economy uncertain and the conditions in the banking industry tumultuous at best, the likelihood of a debt going bad is higher than ever before. Budgets can help with debt but sometimes that dollar does not stretch that far.
Posted on 20 mar 2019