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Bankruptcy Protected Assets
If you file for bankruptcy, burly men don’t show up and take all of your possessions. Bankruptcy itself protects certain assets from creditors. Bankruptcy is not designed as a punishment but rather is designed to protect YOU while returning some money to creditors. If you don’t own your home and are earning an average income ($60,000.00 PA), chances are your life will not be significant different after bankruptcy. Bankruptcy protected assets include: furniture, appliances, clothes, most household items, tools of the trade or...
read moreDEBT CONSOLIDATION 2
Debt consolidation is often thought of as your first line of defense for dealing with debt. Our clients often mention their desire to have all their debts in one place to escape the stress of a thousand statements. The theory behind debt consolidation is that a single new loan is taken out to pay off your previous debts, often credit cards and personal loans. The idea is that the consolidated debt has a lower interest rate than your previous debts, and so you save money over time. However, it’s not always as simple as that. Debt...
read moreDebt by postcode – who’s in the red?
There may be more households in the mortgage belt facing escalating personal debt, but some living in Brisbane’s blue-chip suburbs are drowning in it. Figures compiled by Debt Mediators showed there were more households in outer suburbs, including Beenleigh, Camira and Springfield Lakes, one month behind on personal loan and credit card repayments. They had an average debt between $27,765.00 and $33,597.00. There were far fewer residents in financial difficulty in Brisbane’s elite suburbs, but those who did have mounting debts...
read moreWhen dream homes become a nightmare
Under pressure … wealthy home owners are also feeling mortgage stress, according to experts. Mortgage stress is affecting just as many households in Ascot as it is in Acacia Ridge, according to the experts. Repossession rates may be on the rise in Queensland but Ben Paris, of Debt Mediators, said the suffering was not confined to outer suburbs. “Mortgage stress does not discriminate between inner city properties and those in the mortgage belt,” Mr Paris said. “It is often said that the mortgage belt or the outer...
read moreDebt Consolidation Tricks and Traps
Debt Consolidation Trap 1 Balance Transfer- If you have credit card debt, balance transfer can look like a tempting debt consolidation option. Understand that any new purchase on the new card will attract full interest, and any payments you make go on this new debt first, not on the old debt. There will be a fee for this service, generally 1% of the full balance of the debt. After 12 months the low interest rate reverts to the standard variable rate and you’re back to where you were. There may also be exit fees if you...
read moreDebt, Debt Consolidation and the Pension
Credit Cards and personal loans are a large factor in predicting whether or not you will be a pensioner. If you have a credit card with a balance, and you can’t pay it off in full at the end of the month, this is a strong indicator that you will become a pensioner. Iif you can’t afford to make ends meet now, how are you going to make ends meet on $671.90/fortnight for a single and $506.50/fortnight per person in a couple? There is Hope Credit Cards and personal loans are big predictors because it means a) you’re not actively...
read moreInterest Rates Up Up and AWAY!
The Reserve Bank of Australia (RBA) is likely to raise official interest rates by 0.25% on Tuesday 5th. The cash rate now sits at 3.75%. The 0.25% increase will add an extra $15.00 in monthly repayments for every $100,000.00 borrowed, or $45.00 on the average mortgage. Interest rates on personal loans, credit cards and car loans will increase. Economists predict that the cash rate will be go up at least 1% by mid 2010, and 1.5% by Christmas 2010. This would add an extra $92.30 in monthly repayments for every $100 000.00 borrowed, or $277.00 on...
read morePersonal Cash Flow – Liquidity for the Thirsty!
Do you find that many weeks, more money seems to be going out than coming in? Do you earn reasonable money and can’t work out why it’s so hard to make ends meet? The answer might be surprising; cash flow. Cash flow is a business accounting concept, but don’t let that discourage you. It could be vitally important for your personal finances. Cash flow refers to the movement of cash into or out of your possession, or the amount of “cash” you have on hand to pay expenses. It you don’t get it right, you’re in trouble. Many...
read moreFamous Bankrupts
Many people, when finding themselves facing bankruptcy or serious financial difficulty, feel isolated and alone. Many feel that if they file for bankruptcy, they will have been a failure. Many people who file for bankruptcy go onto do great things; below is a list of famous bankrupts. Amoung the list you will find three US Presidents, the founders of the biggest two car manufactors (Ford and General Motors), Alfred Nobel (founder of the nobel prize), Donald Trump and Nikola Tesla (the man who gave us electricity as we know it). ...
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