A recent survey has showed that 1 in 3 Australian families are “struggling to make ends meet”, recent research suggests.
Despite our good wages and benefits, the soaring cost of living in most urban and rural areas of Australia is costing us consumers dearly, and the only combat we have is Credit! Many of us also appear to live within our “current means” as opposed to living “below our current means” and saving for a rainy day.
One in three families in Australia have skipped bill payments, pawned goods or missed meals to try and cut costs. Many people have also been laid off in the last year and are struggling to find work. As most have minimal savings (approx 1 month’s worth of living expenses) there is a lot of stress placed on many families and Credit appeared to be one of the only methods to get through the tough times.
Above 30% of surveyed families said they had experienced at least one form of hardship over the last year and 77% of those who fell behind on their mortgage said it was the first time that this had ever happened to them.
As we are all unsure of where the economy is heading at present, I suggest that you follow some remedies as per below in order to avoid problems.
Remedies to avoid hardship
– Always try and put away some savings when you are working (as a guide approx 10% of your net wages)
– Save first & spend what is left, that way you don’t feel you are missing out on anything
– A family should aim to have at least 3 months of savings in case of any emergency or unemployment
– Draw up a budget on paper so you can see where you can cut back and save money
– Avoid multiple credit facilities. Try and keep just the one credit card if you require it
– Always pay off the Highest interest loan/credit card first to save on interest
– Try and avoid borrowing more to pay off other credit… and if you do take out a personal loan to pay off a credit card, make sure you cut up the credit card after it is paid out
– Shop around for better deals on insurance premiums, utilities etc…
– Try and bundle bills and so on with the same provider in order to get a discount
– Don’t buy things that you do not need, focus on the necessities of life
If you do need further assistance or help with your current Debt Situation, give Debt Negotiators a call on 1300 351 008 and we can help you to consolidate and pay off these debts with one easy payment or point you in the right direction.