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What Will Happen If I Can’t Pay My Debts?
You going to default on your payment. What’s going to happen? If you didn’t take it out for business or investment purposes, the following will happen: Under the UCCC: If you miss a payment you’ll be given 30 days notice of the default. You’ll be advised of how to fix the default (make a payment). If you default again, the creditor can commence collection proceedings without further notice (most creditors will give you 90 days; see Debt Collection for more info). Importantly, if you make the payment up within 30...
read moreITSA Research On Debt Agreements
New research released today by the Insolvency and Trustee Service Australia (ITSA) shows that debt agreements are having a generally positive effect both as a viable option for debtors to avoid bankruptcy, and providing a good level of return to creditors. Key findings include: • 77% of debtors said that the debt agreement helped resolve their financial difficulties • 77% of debtors said that entering the debt agreement has made them better able to manage their household budget • 83% rated the overall level of service provided by their...
read moreBalance Transfer Points To Consider
Everyone will have seen something like this advertised for credit card balances transfers, which can seem like a great way to consolidate debt. * No annual fees* * Low fixed rate at 9%* * Buy now, pay nothing for 2 years* That got me thinking: what’s in an asterisk? That little dot at the end meaning conditions apply? So I had a look at a couple of terms and conditions and I’ve listed some. Debt Consolidation with a balance transfer may be a good idea but! you do need to read the fine print. The 0% p.a. interest rate applies to...
read moreSurprising Bankruptcy Facts
One in every 845 people enter into Bankruptcy every year (One in every 2750 will get lung cancer) 85.5% of people who file for bankruptcy are employees The most common cause of bankruptcy is unemployment, accounting for 30% of all bankruptcies, followed by over-using credit Clerical or Office workers are the most likely to file for bankruptcy 73% of people who file for bankruptcy are older than 35 45% are older than 45 22% are older than...
read moreDebt Collection Calls
Question Debt Collectors are calling me ALL THE TIME and as late as 8.30 at night. They even called me at work. Can they do that? Answer Unfortunately it doesn’t sound like the debt collectors have done anything illegal. While their behaviour isn’t pleasant (that’s what they’re paid to be like) and it isn’t banned. When can debt collectors call you? From 7.30 am to 9.00pm weekdays and 9am to 9pm on weekends How often can they contact you? They can contact you 3 times a week or 10 times a month. That includes...
read moreRefinancing Looking Up
Last week I was talking about how the benefits of debt consolidation with a personal loan were at an all time low. The difference between credit card and personal loans hadn’t been this low since 2001, hence the benefits of debt consolidation weren’t as high. That got me thinking. Debt consolidation, as you may recall, isn’t just about personal loans. So I thought I’d look into the benefits of consolidating into your mortgage. The benefit of debt consolidation is the reduction in the interest rate. I graphed the...
read moreWhat is the Purpose of Bankruptcy?
This post, I’m going to continue looking at Bankruptcy Fraud. “Bankruptcy is in place to give people that relief from unmanageable debt,” said Jeff Hanley, ITSA’s national manager of fraud investigation. To ensure that Bankruptcy is viewed as a legitimate option for people who are insolvent, it’s important to prosecute those who try to use bankruptcy to defraud their creditors. “When it comes to the people that (sic) commit offences, in many instances they’re just the people who are trying to exploit...
read moreIs One Payment More Convenient?
Most people use debt consolidation for the convenience of one repayment, but is one repayment actually more convenient? The average saving on a $10,000.00 credit card, when consolidated into a personal loan, is only $5.00 per month, over 7 years. This means debt consolidation doesn’t provide much of an improvement in cash flow. The question you’ve got to ask yourself is, “is it going to be easier for me to find one large payment or lots of little payments?” You may be able to find a spare $20.00 here and there to...
read moreDon’t Worry About Bankruptcy Fraud
A lot of readers are concerned about Bankruptcy offences; in fact they’re more concerned about being locked up if they file for bankruptcy. Tre are 40-plus criminal offences under the Bankruptcy Act so it’s small wonder they do. The main reason people are thrown in the the clink is because of Bankruptcy Fraud. So I thought I would briefly explain what Bankruptcy Fraud is. Bankruptcy Fraud is a crime. Basically it involves concealing assets (think Rene Rivkin), destroying important documents (think Enron), but the most common...
read moreRoof Insulation Bungle Bankruptcy
7000 small businesses are facing bankruptcy and 6000 workers are likely to lose their jobs after the collapse of the insulation installation scheme. When the government introduced the home insulation scheme it dramatically increased demand for home insulation. This false demand was met by a dramatic supply side increase in the number of “insulation installers”. This false demand was bound to end at some point; it’s just happened a lot sooner than many people expected. Small business owners have likely invested large...
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