It is vital to call your credit providers as soon as you know you are unable to meet your repayments. Lenders are far more sympathetic and helpful if you inform them on your problem BEFORE they have to send you a letter of demand – or call you. Many facilities have a ‘payment holiday’ option which allows you to defer payments for a period of time. Even if your home loan doesn’t have such a facility, you will probably find that they will be more than happy to make arrangements to help you through.
Call your Mortgage Broker
In some cases, people may unintentionally overcommit themselves – often with personal debt. Credit cards, personal loans, interest free loans….the list goes on, and sadly many of us fall victim to the ‘have it now and pay later’ marketing ploys that show no mercy!
You may be able to consolidate your debt (particularly the very expensive debt) into your home loan to relieve the pressure. Perhaps even refinancing your home loan to a more competitive product will provide the answer.
It is important to discuss this situation with your mortgage broker, and make a point of not repeating history by then going out and applying for more credit cards!
Your mortgage broker cannot give you financial advice, but they can show you your options and provide a solution for you.
Download a copy of ‘The Debt Handbook’ produced by Young Lawyers, and the Australian Governments ‘Understanding Money’ handbook. Read through them carefully – and make use of the resources they provide!
We all hate to think about budgeting, but it is essential for you to look at where your money is going, and to help you keep track of all income and expenses. This will enable you to plan ahead for your financial needs rather than getting caught short and starting the pain all over again.
Get Legal Advice
If you still can’t get on top of things, it is probably time to seek independent legal advice.
Always remember as hard as it is to start again, your health and your family are the things that are truly important!
If you dont ‘need’ it, dont buy it!