Last year, between June and August, Australia saw an increase of $30 billion in outstanding personal loan amounts. A recent study reveals that 88% of personal loans are for planned purchases, such as cars, education, and home renovation loans. And the rest 12% accounts for unplanned purchases, including medical bills and household emergencies.
The Oz business debt trends are equally alarming, with small businesses owing $26 billion due to unpaid invoices.
If you find yourself in a never-ending debt cycle, engaging a specialist is an optimal way to solve your debt problem. The experienced consultants for debt settlement in Australia offer repayment solutions and protect your credit rating.
Here are a few critical aspects to look for in a professional debt settlement firm in Australia, which will help you make an informed decision.
Bank Debt Solutions
There are about 13 million credit cards in Australia, netting a national debt accruing interest of over $20 billion. Though managing credit cards is a common element in an average Aussie’s day-to-day money habits, for some, a few bad decisions result in a debt trap.
Reputed firms can reduce your bills by 50% in 4 weeks, and their negotiations don’t directly impact your credit report. Ensure that the specialist offers excellent credit card advice and loan repayment solutions to resolve your bank debt issues.
Business Debt Solutions
A recent report suggests that 60% of small businesses accept that late payments are standard in their industry. Such practices force the business owners to take loans for paying wages and suppliers.
The diligent experts at debt settlement in Australia can negotiate and waive much of your business debt, about 30% to 90% of your current balance. They can help you get a 5 to 7-year interest-free payment plan and reduce your monthly repayments by half.
Confirm that the company provides negotiation debt solutions covering a wide variety of debts, including the Australian Tax Office, overdrafts and trade creditors.
Ways of Working
On a positive note, Aussies wiped about $2.45 billion off credit card debts in the year to Nov 2019. However, the country has seen a 0.5% increase in credit card purchases, paving the way for future debt issues.
You will have to discuss your loan situation and hand over your bills to the debt settlement professionals. They will assess your documents, determine the possible loan reduction, and initiate debt negotiations for a positive outcome within two or three weeks.
Ensure you work with professional negotiators who protect your credit rating while leveraging your overall profile for a better agreement with banks.
Debt Settlement Tips
The Australian debt settlement firms adhere to the ACCC’s debt collection guidelines, distinguishing their debt settlement recommendations from debt agreements.
When you consult top experts, they offer prolific debt settlement tips using credit laws and your credit profile, alongside their established relationship with your bank. Check if the suggestions have a success rate of over 90% to ensure they result in securing better deals for you.
AFCA, MFAA, FBAA and ASIC are the important authorised bodies qualifying debt settlement firms in Australia.
Check if the professionals have valid accreditations to their name for a trusted engagement.
Debt Saving Calculator
Renowned Australian companies have adequate experience in reducing debts down from 30% to as much as 100% of what you owe.
Check out their debt calculator to self-assess your savings, which should take no more than 30 seconds. It should be capable of evaluating your financial position and determine how much it can improve.
The burgeoning Australian household debt threatens to worsen recession this year. The government has pledged $130 billion in a rescue plan to subsidise workers’ pay to about 70% of the median wage. But, at about $1,500 a fortnight, it isn’t going to go a long way in most metropolitan cities. It is best to enrol a skilled debt settlement professional to handle your case with sensitivity, to ensure you lead a peaceful life in Oz.
Byron Simpson is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance cent.