topic Re: Debt Busters in Community Spirit

Debt Busters

the*scarlet*pimpernel — Sun, 02 Mar 2014 00:08:08 GMT

ok, so there's this family member that is in a bit of strife with a balloon type payment on a car loan.

Has anyone got any opinions or firsthand knowledge of these debt buster, pay off your debt, type organisations currently advertising on the telly?

Private Messages welcomed and will be kept confidential.

Re: Debt Busters

lakeland27 — Sun, 02 Mar 2014 00:15:50 GMT

''at beyond debt, we dont judge you we are here to help''. people should avoid these sharks. it is a government backed debt agreement, avoiding the mooching middle-men (and women) is the best advice as they may ''consolidate the debt into one easy payment'' . but what's in it for them ? they make the debt larger by including themselves ... adding charges.

Re: Debt Busters

the*scarlet*pimpernel — Sun, 02 Mar 2014 00:22:21 GMT

thats what I reckon too LL,

I looked up one on the web, and it tells you sweet FA, just has an application type, contact us now form. I checked the terms and conditions associated with filling in the form and it was a joke. Basically they could do anything they wanted with anything you wrote about them. So, if you left negative feedback, they could rewrite the lot and just leave your name at the end as another happy customer. Pffft. Not sure in the agreement referred to the debt consolidation agency or the website hosting it. The t&c referred to TV Choices. (insert confuddled smiley)

Re: Debt Busters

**meep** — Sun, 02 Mar 2014 00:24:43 GMT

I agree with Lake. Stay away from them. Suggest to your family member to see a financial counsellor.

Re: Debt Busters

polksaladallie — Sun, 02 Mar 2014 00:28:15 GMT

Relationshsips Australia has a financial advice section, probably cheaper than another sort of financial advisor.

Re: Debt Busters

lakeland27 — Sun, 02 Mar 2014 00:31:13 GMT

when searching i can only find brokers , i can't find a direct govt site to broker the deal without them . maybe its somewhere on one of the govt websites

Re: Debt Busters

debra9275 — Sun, 02 Mar 2014 00:32:25 GMT

I also agree with LL, they are not there to help, they are there to make money out of people's bad situations

perhaps consolidating all loans into one might help?

Re: Debt Busters

the*scarlet*pimpernel — Sun, 02 Mar 2014 00:57:16 GMT

I just read some of the conditions on the Beyond Debt site. Seems like you're almost declaring bankruptcy without being bankrupt.

He's been travelling fine for the past two or three years, but there were a few humps before that when the country was underwater, and jobs were scarce. He had been counting on the banks to give him another loan to cover the balloon payment. (it's more like an airship than a balloon) They won't 😞

Re: Debt Busters

chuk_77 — Sun, 02 Mar 2014 01:30:20 GMT

as someone who was being paid by them???

I had to ring and threaten they I will cancel the service if the company didnt pay. They tried telling me I couldnt do that....ummm yeah i can

basically the whole person wage was paid to them, they delt out money where it was owed, but kept forgetting to pay us. Made me wonder who else they forgot to pay

Re: Debt Busters

poddster — Sun, 02 Mar 2014 03:09:16 GMT

Sell the car and cut the losses.

Maybe that will be a good lesson to learn.

Re: Debt Busters

carls*world — Sun, 02 Mar 2014 01:48:32 GMT

Can't verify whether there was more to the story, but a caller on talk back radio (yes, to Leon) claimed that they contacted one of these places, who initiated their "contract" with a demand for an up front payment, by the person seeking this help, of a 4 figure sum, before they could do anything.
Like they've got a lazy couple of thousand laying around, that's why they're in financial do-do and seeking "help"

Re: Debt Busters

catsnknots — Sun, 02 Mar 2014 03:01:07 GMT

Centerlink also have financial counselors that will help so you can visit them, they can then make automatic payments from any centerlink money if they are getting any.

But those debt consolidators are like going into bankruptcy. They are viewed as you have gotten into trouble and need help BUT the other side is that they won't take your house and car in the process like declaring bankruptcy.

some government links

https://www.afsa.gov.au/debtors/debt-agreement

http://australia.gov.au/topics/economy-money-and-tax/personal-finance

Some good info on debt consolidation

http://www.moneybuddy.com.au/personal-loans/debt-consolidation-a-beginners-guide

Gov assistance if you qualify

http://www.australiangovernmentgrants.org/qa/qa.php?id=government-assistance-for-debt-consolidation

Re: Debt Busters

carls*world — Sun, 02 Mar 2014 03:15:48 GMT

Mod dun't like ya being bitten Pimpy

Re: Debt Busters

the*scarlet*pimpernel — Sun, 02 Mar 2014 04:05:36 GMT

@carls*world wrote:
Mod dun't like ya being bitten Pimpy

apparently not Carl,

Thanks for the replies (most of them)

Re: Debt Busters

fourandsixpants — Sun, 02 Mar 2014 04:11:47 GMT

reply to : meep

I agree with Lake. Stay away from them. Suggest to your family member to see a financial counsellor.

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Anglicare Financial counselling service are excellent......a wait time for an appointment but can highly recommend

Was in a real pickle quite a few years back. They helped me get out of a terrible time with debts and bills. I am a great budgeter and am careful with money but I found myself in a position, circumstances out of my control, where I had none. I was recommended to these girls/guys and was assisted greatly. If it hadn't been for their time, expertise and generosity I don't know how I would have got back on my feet economically or what I would have done with 3 young children to feed.

A huge Thank you to Anglicare Financial Counselling Service....

Re: Debt Busters

carls*world — Sun, 02 Mar 2014 04:15:50 GMT

Re: Debt Busters

esseco46 — Sun, 02 Mar 2014 05:23:01 GMT

I second Anglicare Financial Services - great people who are extremely helpful.

One little tip I would give to the family member is to pay a small amount (say $5-00) weekly of the principle amount which then reduces the amount of interest charged. Together with the weekly/fortnightly/monthly amount designated by the lender, it will reduce the amount of interest - most lenders have you paying off the interest which I think has you paying interest on interest therefore the ballooning affect.

I did this with my home loan over the period when I was not working then increased the amount when I got a job.

It worked very well for me because I reduced the term of the home loan by 14 years.

My eldest daughter used this method with her car loan after she got behind, it saved my sanity and hers.

Hope this is of some help.

Re: Debt Busters

**tay** — Sun, 02 Mar 2014 05:59:03 GMT

Haven't read all replies, so sorry if already mentioned. Do you have a Neighbourhood Centre? They do financial aid.

Re: Debt Busters

i-once-was-bump — Sun, 02 Mar 2014 06:34:14 GMT

What is a balloon payment?

Is insolvency the same as being declared bankrupt?

I thought insolvency was a good way to go if someone is in really deep financial do do but as I don't even know what you are talking about my idea is probably very wrong.

Re: Debt Busters

lyndal1838 — Sun, 02 Mar 2014 23:12:38 GMT

You can be insolvent without declaring bankruptcy Bump. Insolvent just means you cannot pay your debts as and when they are due and it more often than not does lead to bankruptcy.

Bankruptcy is not really the way to go if it can be avoided as it has far reaching and long lasting effects. If anyone is contemplating going bankrupt they should see a financial councillor first to see if it can be avoided.