According to a report by the Australian Small Business Commissioner, Mark Brennan, access to finance is a significant barrier for many Australian business owners.
SME entrepreneurs, in particular, are increasingly turning to their personal finances to fund their ventures. Many have been forced to use their own credit cards and personal loans to finance their company operations.
Starting and running a business can be incredibly tough on company cash flow and finance, especially for start-ups. Too often, this struggle to balance the business’s finances leads to difficulties with personal finance, with personal debt becoming a problem for many.
Small business owners often need to borrow against personal assets such as the family home, or dip into personal savings, in order to support their enterprises. At times, individuals may even need to borrow from family and friends.
If you are struggling financially because of your company, the personal insolvency experts at Debt Free Australia (DFA) can help you explore your options.
As an individual debtor, you have many options, including entering into a debt agreement or personal insolvency agreement, or in some scenarios, filing for bankruptcy.
In less serious situations, you can simply seek professional financial advice. To get professional debt assistance or receive free confidential advice, fill out our enquiry form or call our expert personal debt advisors now on 1800 462 767.

Australia’s economy has slowed to a crawl, leading to fears that the country may be slipping into a recession.
While the Federal Government says that Australia won’t be following Canada in heading for a recession, the nation’s growth figures are now slower than Greece’s.
The Australian economy recently recorded its lowest growth rate in two years, at just 0.2 per cent in the three months to June 2015. This is well below the average of 3 to 3.25 per cent.
However, former Treasurer Joe Hockey maintains that there is “no risk of recession in Australia”.
Shadow Treasurer Chris Bowen, on the other hand,has said that the government is “in a parallel universe” if it believes the economy is doing fine. This is particularly due to the fact that China’s demand for Australian commodities– a major factor that cushioned Australia from the GFC in 2009 – is falling.
Regardless of whether a recession may or may not be on the cards, Australia’s economy is on shaky ground.
So what does this mean for Australians?

• Higher interest rates. Rising interest rates will mean that those with mortgages and other loans will find it harder to repay their debts.
• A lowering employment rate.
• Reduced spending power. Economic data also shows that the nation’s real net disposable income has slid 1.2 per cent – the biggest drop since the global financial crisis. Reduced consumer spending power, in combination with higher prices charged by local retailers due to the lower Australian dollar, means that many will struggle financially in the foreseeable future.

If you need to speak to a financial advisor, contact Debt Free Australia today. We offer professional and confidential advice for all Australians facing an uncertain financial future. Call one of our insolvency experts for free advice on 1800 462 767.

The word “debt” often comes with negative connotations and has associations with stress and struggle.
But debt is not always bad and there is a difference between good and bad debt – you just need to find the right balance.

What is good debt?

Debt is generally considered to be good if it helps you in the long term. Student debt is a good example, particularly because it has a low interest rate. Good debt is also debt that is used to purchase wealth-building assets, such as those that provide you with income or will yield value over time. Good debts are also often tax deductable (e.g. the interest of mortgages).

So, what is bad debt?

Bad debt, on the other hand, is debt that is used to purchase items that you cannot reasonably afford. It also often comes with high interest rates e.g. credit card debt.
Unlike good debt, bad debt is used to buy assets that will fall in value quickly and do not generate long-term income. Examples include using a credit card or personal loan to fund vacations and buy luxury items. Basically, if you start living beyond your means, you are accumulating bad debt.

Can bad debt ever be good debt?

Yes, in some instances. For example, if you are well disciplined and consistently pay off all your credit card debts by the end of each month, your “bad debt” has been used positively to manage your cash flow. Using credit cards might enable you to keep your money sitting longer in a savings account where it may earn you interest.

Finding the right balance

At Debt Free Australia (despite our name) we believe that, while living completely debt-free sounds ideal, it is not necessarily the smartest way to manage your finances. It’s all about finding the right balance. Debt can provide positive outcomes, such as fruitful investments and an improved cash flow.
Our golden rule is: if you can’t afford it and it doesn’t provide you with returns, don’t invest in it.
To learn more about how to find the right balance between good and bad debt, call the insolvency experts at Debt Free Australia today. We provide free professional financial advice on any personal debt problems you may be experiencing, such as cash flow problems or snowballing credit card debt.
Speak to one of our friendly advisers today by calling 1800 462 767.

With Australia’s holiday season fast approaching, many people are finalising their holiday plans – touching up their travel itineraries and formulating their holiday budgets.
Australia sits in the top 10 countries for international traveller presence, with an estimated 9.2 million individuals said to have travelled abroad in the year ending June 2015. Whilst getting away to relax, re-energise and reboot is highly recommended for personal health and wellbeing, it is important to stay mindful of post-holiday commitments – one such commitment being debt.
Too familiar are the physical sensations of jetlag; many do not stop to think, however, of the short- and long-term consequences of ‘debt-lag’. Post-holiday debt can render one unable to make repayments to their other commitments. Within NSW alone, 211,000 individuals have taken more than one year to repay their credit card debt following travel. This figure has increased 17 per cent since the year ended June 2015, with total interest on credit cards portraying an estimated figure of up to $139 million a year.
Unanticipated holiday debts, whether large or small, can impact you on many levels. Debt Free Australia can assist individuals suffering from holiday debt by offering advice and professional debt solutions. Debt Free Australia can help you to explore the options available to you to rid yourself of unmanageable debt – our trained professional debt advisors are ready to consult with you.
Debt Free Australia is fully licensed and authorised to offer formal debt solutions to all Australians experiencing debt. If you experience summer chills from a stack of credit bills post-holiday antics, call Debt Free Australia on 1800 462 767 for personalised solutions to handle your debt-lag.