Close to 70% of Australians have admitted to struggling with
debt and many can’t make their minimum repayments month to month.
In order to overcome this, many people apply for financing
or a new credit card to help cover their immediate costs, without thinking
about the long term ramifications.
Applying for finance to get out of debt will only add to your
debt amount, causing a vicious debt cycle.
If you currently have more debt than you can pay, you do not
have to take out a new loan to pay off your debts.
Get Out Of Debt Without A Loan
The first step to get out of debt without applying for a
loan is to do a budget.
You should write a list of all your debts including how much
you owe, the interest rate you are paying and the regular due dates of each.
From this list you can plan exactly how much you need to
have put away in order to cover your debts. To ensure you have enough money,
you can cut down on everyday luxuries, such as cigarettes, alcohol, movie
tickets, lotto tickets and eating out.
Many people in debt have already tried to budget and still
don’t have enough money to cover their debts and living expenses.
Luckily there are other methods you can try to avoid
applying for a loan to get out of debt.
How to get out of debt with a Debt Agreement
A Debt Agreement is one way for you to get out of debt
without applying for a loan. It is also a great alternative to applying for Bankruptcy
in Australia.
Often, your creditors will agree to waive account fees,
interest charges, and in some cases they will even reduce the principal.
By entering a Debt Agreement, you will be able to pay less
towards your debt every month and in many cases get out of debt faster than if
you had continued to make monthly payments.
You can enter into a Debt Agreement by calling debt relief services
provider or personal debt management specialist who is a Registered Debt
Agreement Administrator.
After providing this professional with the list of your
debts, the professional starts to negotiate with every lender on the list.
In many cases, the company will already have a relationship
with bank employees who are able to make the decisions regarding a debt
agreement for a consumer.
Where to turn for help
If you would like to explore your options to get out of
debt, contact Debt Rescue.
Debt Rescue offers a range of positive solutions to your
debt including budgeting, debt agreements and debt consolidation.
Get out of debt now and Talk to an Aussies Who Cares by
calling 1800 00 3328 or visit www.debtrescue.com.au
