Here at Debt Free Australia we always try to find the least severe financial solution before we consider bankruptcy. With that philosophy in mind, we offer a free financial assessment to explore possible alternatives before committing to Bankruptcy. Whilst filing for bankruptcy is a quick and easy way to get out of debt, it may have adverse consequences, please click here for more information. With this in mind, here are some simple tips you can use to help avoid bankruptcy:
- Cutting down expenses
Putting together a budget is the easiest way to work out and organise your spending habits. Freezing your credit cards is the first step to curb your spending. If you cannot sustain your current lifestyle, consider downsizing, prioritising your necessities and reducing your discretionary spending.
- Selling some of your assets
Take action immediately by sell what you can spare to pay your debts, such as furniture, jewelry, and electronics.
- Negotiate with creditors
You should contact your creditors as soon as once you realise potential issues with meeting payment obligations. In some cases, creditors may agree to lower interest rates, reduce fees, or change payment terms.
- Prioritise your debts
Create a plan to prioritise your debt repayments. Budget to pay for absolute necessities such as food, housing, and transport. Next would be paying off debts with the highest interest rates and so on.
We understand that every situation is different and provide advice personally tailored to your situation about any debt relief solutions. Debt Free Australia is passionate about helping Australians get out of debt and prepare for a better financial future. Please contact us on our 24/7 toll-free hotline on 1800 676 598 to speak to one of our friendly and professional debt relief consultants.