Credit Cards
The thought of eliminating credit card debt, although a relief, can be a target that seems way out of reach for most.
We get caught up and stuck in the trap of taking the weight of the world on our shoulders thinking about debt accumulating with the rate of interest it is attracting sickening us.
There is no doubt Christmas time is one of the worst periods of the year when cards are relied upon and maxed out as people rush to purchase gifts, usually bought on impulse, stock up pantries with food and drinks for the christmas new year period, spend money on entertaining children over school holidays and grown ups submit to buying expensive items to compensate for a long and tiring year.
There is no relenting as the christmas period and school holidays come to a close after a month or more with school returning and fees to pay, books and uniforms to organise not to mention state government taxes for property rates for those fortunate enough to own homes.
The tip for eliminating stress of any kind is knowing there are options and you can maintain control.
Legal Leverage is here to provide information to increase your awareness and expand your options to assist you in managing your finances and ultimately improve your quality of life.
We can provide suggestions with respect to spending but are not here to judge or tell you what to do.
With Legal Leverage you can find people that will assist you to re-organise your affairs, implement change, ease your financial burdens and alleviate emotional stress.
TRANSFER BALANCES
Do some homework and check out other credit card facilities offering interest free periods. Link on the picture below to go to the Top 10 Credit Cards (AUS).
Transfer balances over to a new card with an interest free period… NOT BEFORE CHECKING you can afford the repayments.
When interest is waived e.g. 6 months the monthly repayments are usually higher than you are committed to on present credit cards attracting the higher interest.
Credit Card Choices
CONSOLIDATE DEBT
Combining all your credit card debt and taking out a loan e.g. personal loan with a lower interest rate can enable you to manage repayments and reduce the overall interest repaid on the life of the debt. You will need security for the personal debt which may include a motor vehicle and or a guarantor.
RESTRUCTURE LOANS
Depending on your individual circumstances, financial structure, capacity to repay and your asset position and structure it may be worthwhile refinancing your debt.
For Example:
Utilizing equity in your house property to pay out credit debt in full.
This may involve paying out your existing housing loan and obtaining another loan based on the current improved value of property, effectively borrowing up more with the benefit of having funds at a housing interest rate
There are a number of creative options available if you are in a position to borrow against assets which may include business assets and equity in the goodwill and history of the business.
Legal Leverage has access to numerous select mortgage brokers, lenders, financial planners, solicitors, accountants and other professionals.
FINANCIAL HARDSHIP
Your individual circumstances may enable you to claim financial hardship and have the terms of your account reconsidered.
Under these circumstances you can request your provider give consideration to making a concession under Financial Hardship grounds which may involve the following. Speak with your provider and record conversations, take receipts for phone calls and when possible put everything in writing –
- reduced interest rate
- ceasing imposition of further interest, charges or over limit fees for a period of time
- make a settlement offer
SETTLEMENT OFFERS
Offering to repay a percentage of your overall debt will in most cases be accepted by your lender. There will be a minimum percentage the lender will accept which can be in the vicinity of 75 – 85% of the total debt.
If your credit card people sell the debt to a collection agency the collection agency will not have paid full price for the debt. Therefore you are in a position to make an offer of settlement at a lower rate sometimes as low as 30% of your total debt.
ACCESS TRAILING COMMISSIONS
You may be able to receive back generated trailing commissions and fees. Do you have any of the following –
- Managed Fund Investments
- Superannuation Funds
- Allocated Pensions or Retirement Income Accounts
- Personal Insurance Policies (life, income protection, trauma)
- Margin Lending
- Home Loans & Reverse Mortgages
- Commercial Finance
- Real Estate & Property Management Commissions
- Car / Home & Contents / Travel Insurances
Call 1300 305 898 in Australia to enquire
or visit
http://www.irefund.com.au to REGISTER AS A MEMBER
(This service is a referral program)
Most members qualify for a refund of between $1,000 – $2,000.00 per annum.
Alternatively let us know your email and we will send you an invitation to become a member.
ACCESS SUPER FUNDS
If you are experiencing severe financial hardship where you are unable to meet your daily expenses and can provide evidence of outstanding rates etc then it is possible you are entitled to claim funds from your superannuation. These situations are evaluated on an individual basis.
In most instances you should be able to download application forms on the web direct from your superannuation fund and make the application yourself.
Alternatively you may wish to engage a lawyer/solicitor to attend to this on your behalf.
BANKRUPTCY
Although the traditional thought on declaring bankruptcy has connotations of failure and negativity declaring bankruptcy can in some cases be a worthwhile strategy to follow.
Discuss the benefits or end result that can be achieved in your individual circumstances with a solicitor/lawyer and accountant.
MAINTAIN CONTACT
By keeping with your lending facility and mortgage lender appraised as to your circumstances you are more likely to be able to negotiate extensions of time and alternate payment arrangements.
Keeping contact will enable you to have more control by speaking with a consultant they may “manually interrupt the system” to make notations on your file that can provide evidence of your willingness to address the matter as opposed to them thinking you are avoiding them.
Also you are in a better position to avoid Default Notices issuing.
BEFORE ENGAGING someone, or for that matter making an appointment, no matter what industry, we recommend you ask whether there is a fee for your initial consultation.
During your initial consultation, request details on the fees involved (in writing if possible) should you engage them to assist you.
Most lenders do not charge an up front fee other than valuations fees (when applicable and more in appropriate to property). Make sure you ask.
In some instances solicitors /lawyers are obliged to enter into a Client Agreement depending on the costs involved and the extent of the work required.
MENTAL ATTITUDE
Having a positive attitude is crucial to getting through tough times. We all have them just sometimes it seems there is no relenting.
Start by taking stocking of where you are emotionally and financially. Writing is a great way to start with understanding where you are at.
Lists are a great way to get “stuff” out of your head.
- List all your financial commitments
- List details of all income
- List additional expenses for certain times of the year e.g. Christmas – gift purchasing, holidays etc
You will need this information when speaking with a financial consultant in any case and should be factored into a yearly budget if you desire to become this organised.
Beating yourself up over past expenses and purchases are a waste of energy and cause for additional stress to yourself and your family.
Focus on the current situation and finding solutions.
Seek assistance with keeping a positive attitude if necessary until you feel calm and able to function properly.
A personal coach can make all the difference with assisting you to stay motivated, focused and on top of things.
Protect yourself from negative attitudes or comments from others by simply being selective with whom you choose to discuss your affairs.
Stay in touch with your local doctor so that you have a record for any claims you may need to lodge in the future against your income protection insurance as a result of illness caused through stress.
TO YOUR PEACE OF MIND
LEGAL LEVERAGE
Legal Leverage 
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