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.

“You have to first pay off as much as you can of your highest interest debt before you pay off your smaller, insignificant debts.”
Those experiencing financial difficulty have probably always adopted the above piece of debt advice as their personal mantra. In theory, this makes sense; if you pay off your biggest debts as quickly as possible, you’ll be able to reduce the amount of interest you would otherwise accumulate, right? Right.
In reality, however, this traditional piece of debt advice may not offer the most effective method of debt repayment. For many people, focusing on paying off a number of smaller debts may prove to be more ideal in the long run.
Think of it like this: When you teach your child to walk, you teach them to take small steps. When you quit smoking, typical advice says you should gradually phase it out. When you’re losing weight, rapid loss is frowned upon because of the consequences it can have on your health.
Why should we aim to reduce our debt in this way? Because the personal satisfaction gained by achieving a small goal offers a greater motivation to aim higher, as opposed to the disappointment of aiming too high and falling short on your first attempt.
Similarly, when looking to shed the weight of debt, the best advice is to take baby steps rather than quitting cold turkey. The small victory of paying off lesser debts first can give you a much-needed boost and encourage you to pay off all of your debts.
Adopting smarter financial habits and taking debt advice on board can have dramatic impacts on your financial situation. If your finances have gone down the road of no return, however, professional debt advice and assistance may be exactly what you need.
Debt Free Australia operates a 24/7 hotline so that you can receive professional and reliable debt advice at anytime you need it most. Give us a call today to discuss your finances and see if any of our personal debt solutions are appropriate for you. Contact 1800 462 767.

Just because you have debt, doesn’t mean you need professional debt help. For those who are in deep, however, avoiding asking for help could result in serious consequences for the future.
Many people are too embarrassed, fearful,or even too proud to ask for debt help and advice – but you shouldn’t let your emotions stop you from tackling your debt issues. Avoiding or denying your need to seek help may lead to a build-up of pressure and stress, affecting not only your financial stability but also your quality of life.
You may choose to put off seeking advice in the hope that things will turn around and get better – in the meantime, your debts are piling up even further.Creditors would have begun contacting you and soon enough, you may begin to shut out those nearest and dearest to you. Being proactive and seeking help for your debt before your situation worsens will make a world of difference to your future.
You may first look to work on bringing your debts back under control with the assistance and support of friends and family. This may involve properly assessing what you owe, to whom you owe, your income, potential increases to your work hours, any legal consequences, and even your own willingness to take action to overcome this difficult period in your life.
If, however, you need professional debt help, it is important that you choose the right company. Many financial companies operate unlicensed and under-qualified, presenting several risks to themselves and their clients.
Debt Free Australia has a proven track record in helping people get debt free. In operation since 2006, Debt Free Australia have provided debt help to hundreds of Australians, assisting them to set sail into their fresh financial future. With a CEO who is a fully qualified Chartered Accountant and a Registered Trustee in Bankruptcy, you can rest assured that with Debt Free Australia you will be receiving the best possible insolvency services from a licenced and registered insolvency practitioner.
Seeking help for your debt may seem difficult and demanding, but after you choose the right debt solution, finalise the process and come out with a clean slate, you will wonder why you didn’t take action sooner.
So let today be the start of your new life; give Debt Free Australia a call on 1800 462 767 and book in an appointment today. We’re available to answer your call 24 hours a day, 7 days a week.

Are you burdened with the financial strain of a mortgage or endless credit card debt?
If you answered yes to either of the above, you are not alone. In fact, you are among thousands of other Australians struggling with debt; collectively, you share the title of global leaders in personal debt.
Recent statistics from the Reserve Bank of Australia show that Australians have overtaken US citizens and now have the greatest amount of debt in the world.
Generally speaking, mortgages, personal loans and credit cards are the biggest culprits for creating debt, totalling over $1 trillion AUD.
The probable causes of Australian debt include:

• Legislation designed to help Australians purchase their first home
• Long-term low interest rates
• Steadily rising costs of living, particularly the costs of food and rent. This rising cost has not been proportional to income earnings.
• As the financial outlook for Australia improves, consumers are more willing to borrow money due to increased confidence in the economy.

However, it is important to know the difference between good and bad debt.
Good debt is debt that has been created to shape your future in a productive way, for example, a low-interest rate investment to purchase property. Bad debt is when you are living beyond your means and purchasing things you do not need or cannot comfortably afford.
It is crucial to keep spending and personal debt under control. If you are struggling with what feels like insurmountable debt, it is recommended that you speak to a professional today. Debt Free Australia (DFA) has helped thousands of Australians get back on their feet through formal and informal debt solutions. Our insolvency experts are licensed and experienced to help pave the way for debtors to realise a brighter financial future.
Call us now for a free initial consultation on our confidential hotline at 1800 462 767.

Are your funds drying up? Do you feel anxious every time the phone rings or you access the ATM? Does the daily trip to the mailbox make you fearful?
If you identify with any of the above, you are no doubt looking for a way out. For many struggling individuals, bankruptcy tends to be at the forefront of their minds.
But according to the bankruptcy experts at Debt Free Australia, it is important to have a thorough understanding of the consequences of bankruptcy and any alternatives that might be available, and to reserve bankruptcy as one’s final resort.
When you become bankrupt:

• Your assets may be sold to repay creditors
• Your income and employment may be affected
• You may not be released from all of your debts
• Your ability to travel may be hindered
• Your name will appear on the National Personal Insolvency Index permanently
• You will receive a mark on your credit file, affecting your ability to obtain loans
• Your bankruptcy period will last for a minimum of three years

For these reasons, looking into bankruptcy alternatives, such as a Debt Agreement or Personal Insolvency Agreement, is strongly recommended before committing to bankruptcy. Amongst other advantages, these personal debt solutions allow one to negotiate with their creditors to come to an agreement which may significantly reduce the amount of debt to repaid, without all of the negative consequences of formal bankruptcy.
The professional team at Debt Free Australia are qualified bankruptcy experts who administer hundreds of insolvent cases every year and fully understand the implications of bankruptcy.
Don’t take the risk of working with unregistered professionals; the DFA bankruptcy experts are qualified, knowledgeable, and have many years of experience in the industry, making them the best choice to take on your case.
So for the lowest price insolvency and bankruptcy services from registered bankruptcy experts that you can trust, choose Debt Free Australia. Contact our 24/7 hotline on 1800 462 767 and receive professional financial advice at any time you need it most.

Have you ever found yourself tempted to spend more than you can comfortably afford when making purchases with a credit card?
This is a familiar dilemma that many Australians face on a daily basis.
Credit cards provide a whole range of benefits, from the ability to borrow from the future during times of financial difficulty to maintain a constant standard of living, to the simple convenience of carrying a card instead of cash.
However, research suggests that credit cards can psychologically stimulate overspending, leading to long-term debt problems for many Australians.
Overspending with credit cards is common because:

1. The average credit limit is usually a multiple of consumers’ monthly incomes. A limit that high can make it easy to overspend.
2. Credit limits can also help purchases appear small. For example, a $10 chocolate bar might seem less expensive when compared to a $5,000 credit limit.
3. The minimum payment is generally only 2% of the total balance. This makes it very easy for consumers to be tempted to make a small payment today to get through the month and worry about actually paying off the debt later.
4. Credit cards make it easy to splurge. Research has shown that people are often willing to pay double the price for an item when using a credit card as opposed to cash, because it is less psychologically painful to swipe a credit card than it is to physically hand over cash.
5. Credit can psychologically stimulate the desire to spend money. A series of experiments conducted in the 1980s suggests that consumers are conditioned to associate credit card logos with consumption and purchases.

If your credit card debt has snowballed into a serious problem and you are in need of a professional debt solution, contact the insolvency experts at Debt Free Australia (DFA) today. We can provide free professional financial advice on your debt problems, as well as help you to find an appropriate debt solution, should you require one.
Talk to our friendly staff now by calling our free 24 hour hotline at 1800 462 767. Don’t delay taking action – begin your journey to a debt free future today!

No one likes having debt. It’s as simple as that. But for many Australians, this is the unfortunate reality.
They wake up – often after very minimal sleep – to the sound of their phone ringing. After anxiously picking up the receiver, a loud, angry voice fills their ears. Their chest immediately tightens up, their heartbeat quickens and their brow furrows as they stammer a quick response, drop the receiver and fall back into hiding.
Let me tell you, there’s hope. There’s always hope!
Many individuals in this undesirable situation immediately look to declare bankruptcy, an option perceived by many as a quick and easy ‘way out’. Coming with many serious consequences, however, bankruptcy is not a path that should taken without a full understanding of, or consideration for, the other legal alternatives available.
Your first option is a Debt Agreement. Put simply, this option has the potential to free you of unsecured debt within 3-5 years without having to declare bankruptcy. It gives you the ability to negotiate your debts with your creditors and come to an arrangement whereby you will pay them a settlement amount that is free of additional interest and charges.
A Personal Insolvency Agreement is essentially the same, with the main points of difference being your eligibility to enter into one of these two agreements (which is based on your income, debt, and asset levels) and the logistics of how it is set up and administered. Both of these debt solutions offer a legal alternative to bankruptcy, and allow you to freeze your interest and attempt to rectify your financial situation without placing the mark of bankruptcy on your credit file.
But in order to completely release the pressure of unmanageable debt, you must first relinquish the financial reins to a trusted and licensed professional which is known in the professional circles as a trustee in bankruptcy
So say goodbye to debt and hello to Debt Free Australia.
We’re available 24 hours a day, 7 days a week – so the next time insomnia strikes, pick up the phone and call 1800 462 767, and let DFA help you take the first step towards your new debt-free life.