Debt Free by Christmas 2017
There are a number of debt assistance organisations geared towards helping you with financial problems. They are broadly categorised by the following:
- Bankruptcy companies, including Part 9 Debt Agreements
- Debt reduction companies or debt negotiators / debt mediators
- Financial Counsellors
- Budgeting organisations
Each of these services have their own advantages and disadvantages and their services suitability will depend on your personal circumstances on what suits you best.
The biggest mistake a consumer makes when consulting some organisations is believing the hype without checking the facts. Promises of debt relief can be made before you pay an upfront fee -yet difficult to see through after the upfront fee is paid. Check the fine print, speak to other organisations to compare conditions.
Alternatively, you can take the initiative yourself and seek out ways you can aim for a debt free life. You can write your own debt rescue plan:
- Reassess all service provider’s contracts such as phone, power, insurances etc. you could literally save thousands of dollars simply by changing providers or seeking a loyalty discount.
- Budget and keep to your budget.
- Cut the most obvious expense out like buying lunch and coffees every day, taking your lunch to work could save you many hundreds of dollars every month.
- For a month keep your receipts for every purchase and log every transaction on your bank account, you’ll be shocked how costs build up so quickly on little things like bank fees, clothes, movie tickets etc.
These are some ways you can achieve debt freedom within the medium term.
Remember, the problem is not the debt, the problem is our mindset. If you feel comfortable with debt, then your head is in the wrong place and there’s a good chance you’ll be in debt for the rest of your life. If your mindset around debt is short term inconvenience with short/medium term plan to becoming debt free, then you’re in the right place.
The advice provided in this article may not be suitable for your individual circumstances.