Then take action now!
In January 2018 there were over 16.7 million credit cards in Australia and 70.19% of us have a credit card. In addition:
So what does this mean for the ‘average’ Australian?
Did you know if you are a prospective home buyer and have ‘average’ levels of accumulated debt it could affect your borrowing power bu almost $100,000?
With the median Australian house price at $818,416 what impact might this have on your home ownership dreams?
Perhaps ask yourself these questions…
If you answered yes to one or m ore of these questions, then perhaps it’s time to look at a solution for your debt situation NOW – before it’s too late.
Why do so many of us have debt problems?
Some people fail to recognize that using credit to purchase items for use TODAY means they are spending their future earnings before they have even received them.
In the past lender offered credit card, with pre-approved limits, without thoroughly checking credit histories or capacity to repay. With debt levels on the rise the government is currently reviewing credit card rules – there is a push for lenders to assess suitability based on a consumers ability to repay within a reasonable period.
How have the times changed? In the past we saved up or used the lay-by method, ie we used money we already HAVE for items we wanted. Now, as an ‘instant gratification’ society with an abundance of credit at our finger tips we are tempted to use it without considering future consequences. Little wonder many people experience high levels of debt.
What are the first signs of trouble?
Eventually your repayments start to approach – or even exceed your income.
What is the solution?
We all know that good budgeting and discretionary spending discipline is the real answer, but sometimes it doesn’t matter how well you budget there’s just not enough money to make ends meet.
One solution (and this is NOT for everyone) may be debt consolidation.
For some of us it may be too late for budgeting because the debt level is already greater than your income and there is nothing that can be done. In this instance, debt consolidation may be an option for you.
What is debt consolidation?
This is when you take multiple debts (where the majority of the debt has much higher interest rate) and consolidate the debt into one loan with a lower average interest rate. Generally most people opt for refinancing against their home (using existing equity) as it has the lower interest rate. For example, your home loan rate may be 5.00% or even lower as opposed to a personal loan that might be 10.95% or higher (definitely lower than most credit cards).
How can we help?
1. If your debt levels are a concern and you think you may be experiencing the first signs of trouble CALL US NOW before it is too late. We don’t judge. We are here to help.
2. Ask us for our debt consolidation spreadsheet to see how much we can potentially save you each month to go towards the payment of your debt. You may be surprised.
3. Even if you are managing your current debt, it never hurts to review your finances to see how your cash flow can be impacted favourably.
4. If you have friends or family who you think could benefit from reading this article, please forward it to them.