Tips on Debt Solutions Available in Australia

Debt can be a winding cycle that people ignore until the situation becomes worse. If you are in debt, you need to find a solution as soon as you can. Managing debt effectively involves paying off debts regularly to preserve your credit rating and get your finance back on track.

Income and Expenses

One of the crucial steps that will begin your journey towards freedom from debt is to list down your monthly expenditure and categorizing that according to necessities and non-essentials. Use your budget to create columns for your expenses and income. The ideal situation is for your income to exceed your expenses.

Use Cash

Avoid using your credit card by adopting the habit of using cash to pay for your purchases. This will limit your spending to the cash that you actually have. Save all your extra money and set aside a savings account for it to pay off your loans.

Reduce Expenses

Reducing your expenditure regularly will enable you to have more money for this type of fund and get out of debt faster. Think about the expenses that you do not need because the goal is to reduce your expenses and channel more money towards paying off your debts.

Increase Income

If you are unable to lower expenses, you will have to earn more income. Whether you need an extra source of income such as working part-time or starting a business, more income will be necessary. Extra income can be used to pay off debts.

Consistency

Aim for consistency within your budget and set a target that will determine how much you pay every month regardless of your circumstances.

Recommended approaches for paying off credit card debt include paying off smaller debts or high interest loans first. The goal is to lower balances and speed up the process of eliminating debt.

You can seek a debt consolidation loan. By lowering your debts and you continue to make the same payments each month you will pay these debts off quicker. If you pay off one debt, move on to the next creditor and continue making your regular payments.

Savings

While paying off debts, remember to keep saving money. If you encounter an emergency without adequate savings, you may end up further in debt. This would be a major setback that you can avoid by making sure that you have a savings account.

Contact Professionals

If you need professional assistance, you can research on different debt solutions and programs to gain insight into how they can help you. If you have lenders who are unwilling to negotiate and you are overwhelmed by debt, finance professionals can help you overcome the problem. Contact a reputable company that offers solutions such as debt settlement and debt consolidation.

Consultants and experts negotiate with lenders to reduce rates and debt amounts. They can settle, renegotiate and adjust your debt terms with creditors. This includes lowering the balance, reducing amount owed and interest rates. Choose a solution or program according to the terms and how much you will be able to save.

Most Australian Banks will not approve loans to help you refinance your ATO tax debt. We can help you refinance your tax debt to put you back on the front foot, back in control.

What is a Tax Debt?

The tax debt or liability is the total amount of debt (money) a taxpayer or entity is legally obligated to pay the government as the result of the occurrence of a taxable event. Different taxable events command different tax liabilities and include, but are limited to:

The receipt of Annual Income (i.e. money)

All revenues derived from a business, less all expenses

The sale of an asset for profit (i.e. real estate, stocks, liens, a patent, accounts receivables, or a claim on debts), or

An inheritance of money or assets from an estate

How is a Tax Debt Recorded in Financial Statements?

The tax liability is recorded as a short-term liability in financial statements, and takes precedence over all other liabilities.

How are Tax Liabilities Incurred?

Tax liabilities are mostly incurred because; taxpayers (entities) are not setting aside enough cash (money) in the event of the following occurrences:

Large increase or decrease in earnings

Accountant errors, bookkeeper errors or tax planning errors

A change in the circumstances of a business

Unsound budgeting for tax obligations (i.e. accrued or assessed taxes)

Are you Able to pay your Tax Liability?

Every financial year you may be just like many other taxpayers or entities whereby you, find yourself in a situation, where you have not put aside the necessary cash to pay the tax liability you may owe to the government for any or all of the following taxes:

PAYG Tax

Goods and Services Tax

Business Tax

Fringe Benefits Tax, or

Capital Gains Tax

What Options do I have to pay my Tax Liability?

Like many other debt problems, tax liabilities will not go away. You may be able to arrange a “Payment Plan” with the ATO. However, the payment terms may or may not be suitable for you, because:

The ATO will usually require you to pay back the whole debt in 1-2 years and this can make your ATO payment structure plus your ongoing tax liabilities difficult to sustain

The ATO will usually not re-instigate a payment plan if you have missed any payments, even by one day

Can I refinance my home loan to pay my Tax Liability?

Yes, if you are unable to pay any of your tax liabilities, do not take tension. Simply contact a reputed brokerage firm. It will arrange a tax liability loan and ensure that the following actions are not taken against you by the Australian Taxation Office:

A Court Judgment

Outsource the debt owing to a debt collection agency, or

Even force you into Bankruptcy

So, this is how you can obtain tax debt loans and pay off your tax liability.

Are you worried about paying off your tax liability? Contact Non Conforming Loans and put all your worries to rest with tax debt loans. You can even obtain low rate commercial property loans to pay out your tax liability.

Non Conforming Home Loans

There are many reasons why people get turned down for a home loan by mainstream lenders/credit providers. You may not realise that one of the most common reasons is paying a bill late or defaulting on a loan repayment. Other reasons include having a part 9 debt agreement against you, a bankruptcy, a default on a credit card or a loan or having court judgements against you. Don’t despair as non conforming home loans can give people who have bad credit history the opportunity to buy or refinance a property and rebuild their credit rating. Such home loans are the perfect way of making your dream home a reality.

How do I know if I have Bad Credit?

You will probably have bad credit if:

You are a Bankrupt

You have a Part 9 Debt Agreement against you

You have a Default registered in your name

You have Court Judgements against you, or

You have missed credit card, loan or mortgage payments

You should also try and avoid making lots of enquiries/searches for credit as these enquiries/searches will give you an adverse credit history and will also affect your credit rating.

Non-Conforming Home Loans provided by Specialist Lenders

Providing debt solutions is a specialist market and fortunately there are a number of specialised lenders/credit providers that concentrate on understanding and providing the best non-conforming home loan solutions to individuals.

Specialist lenders/credit providers are concerned about responsible lending (making sure you can afford the repayments and thereby avoid further debts), and also that you concentrate in “rebuilding” and “repairing” your credit rating.

Effectively, specialist lenders/credit providers will:

Assess each person independently and on a case-by-case basis

Consider your potential to repay the non-conforming bad credit home loan rather than just look at your history

Assess when and why your credit problem occurred

Assess who you defaulted against and what has happened since, and

Consider your explanation as to the reason of your bad credit or default, etc.

The main documents that will help in determining your acceptance for a bad credit home loan will be:

Your proof of income

Your secure and permanent employment, and

Your proof of recent loan or mortgage repayments

You will find it useful to seek expert and specialist advice from a professionally qualified finance broker who has a thorough knowledge of the credit policies and standard requirements for non-conforming home loans. A specialist bad credit finance broker will give you impartial advice on the best non-conforming home loan available.