Category Archives: Financial Services

Fact vs Fiction on Debt Relief Options

There are several options when it comes to debt relief in Australia. For this reason, it can be confusing for consumers to choose which the best method to adapt is. One of the best ways to choose is to educate yourself about the basic options available to you. Among the most common ones are debt mediators, debt consolidation, credit counseling, debt settlement and even bankruptcy.
debt mediators
Take time to learn about the common perception about each method to become debt free, as well as the truth behind them:
Credit Counseling
Fiction: All credit counselors are the same.
Fact: Some credit counselors are legitimate, others are not. Do your research before you decide to work with a credit counselor. Just because a company poses to be an expert that does not mean that they actually are. Be especially wary of hidden fees and charges. You would not want to incur more debt than you can handle.
Fiction: All non-profit credit counseling agencies are reputable.
Fact: It is not just the fee that you must look into; you should also consider the quality of credit advice you are getting. Ideally, you want a credit counselor that is reputable, experienced and easy to reach, in case you might have questions regarding your debt situation.
Debt Consolidation
Fiction: Debt consolidation will only make your debt problem worse.
Fact: On the contrary, debt consolidation will make repayments of your debt easier. Since all of your existing loans and debts are rolled into one, you do not have to make multiple payments a month. There are certain downsides to this method, though. One of them is that the repayment period is longer to make the monthly payments lower. But this is a good payoff if you are willing to commit to your monthly payments. Moreover, you have to be responsible enough to meet the payments or it will cause your debt problem to become worse. This could lead to an unending cycle of debt problem.
Debt Mediators
Fiction: Debt mediators will hurt your credit score.
Fact: There are certain risks involved when choosing debt mediators for debt relief for financial hardship. However, this can have huge payoff in the long run as your debt problem is handled by someone who is an expert at dealing with the same situation. This is a great method for those with a substantial amount of debt.
Fiction: Bankruptcy is a good alternative when you are out of debt relief options. Read more at Debt Mediators
Fact: If possible, you want to avoid filing for bankruptcy. Look at other credit relief options, especially ones that offer reduced monthly payments. Filing for bankruptcy will have a lasting impact on your credit score – it will stay there for 10 years. It might be easy for you now to get out of debt, but a few years later when you want to buy a house or file for a loan, the consequences could be heavy for you. Try to learn as much as you can before filing for bankruptcy. Or, you could talk to a financial expert about your other options.

Ways to Get Out Of Debt Quickly

Living in Debt is not a good thing at all, especially if you are not in a position to repay your loan. However, It does not matter which situation you are in, if you happen to have taken a loan and signed for it, then you are obliged to pay the money back, even if you are undergoing a financial recession in your life, or if you have gotten into an accident.

DebtMany people strive so hard to get themselves out of debt, but things become even more harder and they give up at the end. This does not have to be the case to you. However, did you know that you can get out of poverty quickly without being declared bankrupt?

  • Declaring bankruptcy

Most people, who fail to pay off their debt or fail to reach an agreement with their creditors, choose to petition voluntarily to become bankrupt. But before you declare bankruptcy, why don’t you use the following on how to get out of debt and see if they work.

Make a conscious decision to stop borrowing people money

If you are that kind of a person who uses debt to fund lifestyle, then you should stop immediately. Don’t sign up for credit cards and furniture, or testing driving exotic cars that you cannot pay for. This way, you will be able to focus on paying the debt that you currently have. This will also help you design a game plan to finish the debt more quickly.

  • Create a starter emergency fund of at least $1000

Well, an emergency fund is critical in a critical situation. If you do not have sufficient cash in the bank and the emergency occurs, you can use your credit card as a source of funding for such emergencies. You need to create a buffer between your debt and you – this is the main purpose of emergency fund.

  • Create a budget and follow it to the letter

Design a budget that is realistic. Calculate your total monthly income and expenditure and know what to cut and what not to cut from the expenses. This act will help you know where you stand financially, and ways you can work towards paying your debt. The main purpose of having a budget is to increase the surplus and use the extra cash to pay the debt.

  • Organize your debt

It is crucial to map out your plan to pay your debt. There are two methods you can use to organize your debt. Firstly, you can list your debts from the smallest amount to the largest amount-  let not the interest rate confuse you at this moment.

 The second method is known as laddering. In this approach, you list your debts from the highest amount to the smallest amount. Mind you, you should start with the one with the highest interest rate. This method is effective and reliable.

  • Throw any extra cash at your debt

If you get extra money that does not have urgency of use, you can throw it at your debt. The more money you set aside for your debt, the more quickly you will clear it.

Finally, go to and learn how you can pay your debt as well as understanding the debt agreement calculator.

Reliable Credit Solutions and What to Expect

Fast and easy credit anytime and anywhere, credit card is the answer! Yes, you can enjoy the privileges and the perks that anyone could ever dream of! It increases your purchasing power to the maximum level since it is on credit with deferred payment terms. You can buy what you want and where you want like tickets, merchandises or even services through affiliated merchants or even in online without the hassle of falling in line. Freebies and discounts are up for grab. Really, credit card is very attractive to have. However, in every credit offered there is also an equivalent opposite reaction. In every increase on your purchasing power means an increase in your credit card debt. This credit card debt is one of the major problems in the world today. As the appetite for buying anything using your credit card increases, your credit card debt will also increase to the point that you can no longer update your monthly due. That is why people who own a credit card are strongly advised to limit their usage if possible so that their credit card debt would not go up and eventually may result to the default in payment.

In the event that debt would rise, that you as the account holder or the credit card owner could no longer pay to such dues, in order for you to update your payments for your outstanding credit, most of the bank offers different terms that suites to your willingness and the capacity to pay off such credit card debt.

Aside from banks, there are also firms and other organizations that advocates in services that assist you in your decisions to solve your temporary financial hardship. One of these is the Debt Mediators Australia. They offer a great help in managing your account with the bank through its effective solutions that will surely meet your needs to address your finances.

Credit card consolidation

The credit card consolidation is a mode of payment facility that is done through balance transfer. In other words, the funds / credits from your card with a high balances will be transferred to your other card and the payment will be computed and scheduled made for you.

Legal insolvency agreement

The legal insolvency agreement allows you to choose which mode of payment you want to settle your obligation. This agreement entitles you to repay your debt at a lump sum, transfer of property or schedule of payment. This gives you the chance to eventually and gradually pay your obligation.

However, these two modes of payment terms usually comes with an additional interest to your principal.

Apart from all of these, it is still best that you should discipline yourself when it comes to credits through credit cards. Yes, you can use it anytime and anywhere you want with deferred payments, but just be sure that you are disciplined enough to control the usage of your card. Buying anything whether goods or services using hard earned money is still the best way to do it than to have it on credit.

For more information, visit at