Debt Busters

[the*scarlet*pimpernel]

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.

[carls*world]

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"

[catsnknots]

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

[carls*world]

Mod dun't like ya being bitten Pimpy

[the*scarlet*pimpernel]

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@carls*world wrote:

Mod dun't like ya being bitten Pimpy

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apparently not Carl,

Thanks for the replies (most of them)

[fourandsixpants]

reply to : meep

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

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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....

[carls*world]

[esseco46]

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.

Di

[**tay**]

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

[i-once-was-bump]

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.

[lyndal1838]

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.