Australian debt is surging to new levels! With debt growing, it’s a good thing the Australian government uses responsible lending practices to make borrowing and debt fair for the everyday Australian.
As a borrower you are afforded rights allowing you equal footing with your creditors. They don’t want you to know these rights, because it can hurt their business. Take advantage of these 7, completely legal and slighty sneaky ways of reducing your debt or getting out of it all together! #4 will have you wondering why you didn’t bother to find this out earlier!
1. Banks have to try and help you out of hardship.
Your lender has a responsibility to take positive steps to help you pay your debt back. Your rights are secured with the all important clause 25.2 of the Code of Banking Practice.
2. Did you know you can adjust your contract and reduce payments?
If you are struggling to repay your debt and have found yourself in a tough position, then use your rights. There is no guarantee that your bank will adjust your contract, but they cannot ignore your situation. With help adjusting your contract and reducing your payments contact Just Budget! Apply to have your contract adjusted with us, or as #3 suggests, pause your payments.
3. Extend your contract – Pause Your Payments!
There is no such thing as a free lunch, but you can negotiate with the bank and have your payments paused. This, of course, means that your payment period is extended to cover the difference. When you are in a tough spot, hit the pause button.
4. Stop dealing with your annoying creditors, GET DEBT REPRESENTATION!
Once you have elected a representative, your lending institution can’t contact you. All the annoying notices, payments, threats can be directed elsewhere to a debt negotiation specialist.
If you are working on paying your debt back and just want the calls and letters to stop, contact Just Budget, they offer debt negotiation services to protect the rights of the Australian borrower. Just Budget has the power to stop your creditors!
5. Your creditor can’t ignore you!
Too often months go by after a request for information and not only is it illegal, it is unethical for them to ignore you. Debt Collection Guidelines state a lender must respond to your request within a reasonable amount of time, about 14 days.
6. You may request your loan information.
Anything within reasonable and practical actions should legally be taken by your bank or lending institution. Stay informed, it is their job to help you stay up-to-date, and it is in your best interest to keep up-to-date.
7. Put forward a repayment proposal.
Debt Sucks! Luckily the Australian Government realises this and has put in place some fair and reasonable practices to secure your ability to repay debt. Debt can create a level of modern day slavery, push back at your bank, and offer a reasonable alternative to repay debt on your terms. Consideration must be given to any repayment proposal you put forward.