Payment and Financial Strategies
Do you control your money and your debts or are they controlling you? Many Australians do not have a clear understanding of how to take control of their financial wellbeing. They live from paycheque to paycheque, have escalating debts and blame the government, their boss, the banks, but do little to help themselves.
Money has a funny quality, no matter how much of it you have it is never enough. The trick is learning how to take control and allocate your available money to your essential purchases.
Everyone has heard about the importance of budgeting, and unless you have unlimited resources budgeting will help you from overspending and achieve your long-term financial goals (if you in fact have established these). Once you have a budget in place, employing certain payment and financial strategies can help you become debt free sooner and achieve your financial goals.
Should you pay your bills using cash, direct debit or salary crediting? Should you look at consolidating your debts in order to reduce monthly repayments?
There are a number of payment strategies that you can decide to employ. Even if you have never given this subject much thought you are still employing some sort of payment strategies to keep up (or not) with your bills.
We advocate that these should not be ad-hoc but well thought through methods of debt reduction and even possibly wealth creation. If you are repaying your debts but have no money left over at the end of the month, or feel like you are getting nowhere financially, you should consider utilising a payment strategy to help you save interest and become debt free faster.
Doing nothing achieves nothing
If you do nothing and just pay the minimum payments you may eventually become debt free. The time it takes to become debt free is longer than if you used a Payment Strategy. Furthermore if you find yourself incurring other unforeseen debts, these may become the ‘straw that broke the camel’s back’ and could push your financial stability over the line.
To prevent this you should always look at strategies to improve your financial welfare. The following pages describe some of these.
Alternatively, for an obligation free discussion with our debt specialists, please call 1300 300 121