7 Savvy Ways to Reduce Debt

reduce your debt
While experiencing financial hardship, many Australians are not aware that there are solutions to reduce your debt. Banks have become more accountable for responsible lending practises and this gives the individual a little more negotiating power.

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Australian debt is surging to new levels and more of us are looking for ways to reduce debt. The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry concluded on the 9th February 2019, and a number of sweeping changes has affected the financial sector.

As a borrower you are afforded rights allowing you equal footing with your creditors and financial institutions are required ,by law, to help you reasonable manage your debt. The following, legal and important points will help you get on top of your financial obligations.

1. Banks Are Obligated To Help Your Pay Your Debts

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. You Can Ask To Renegotiate Your Contract

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 – Ask To Pause Payments

While 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. If Dealing With Creditors Is Overwhelming We Can Help

Once you have elected a representative, such as Just Budget, 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 Must Not Ignore You

Debt Collection Guidelines state lenders must respond to your request within a reasonable amount of time, about 14 days. If time passes and you don’t hear, chase up your request. Lenders are legally and ethically bound to respond to your request in a timely fashion. Check that they have your most recent details, and that they received the request. Sending any mail to lenders by registered mail is good practise to ensure receipt of your correspondence.

6.  Request Your Loan Information

It’s important to know exactly where you stand with the status and details of your loan. 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.  Offering A Repayment Proposal One Is One Way To Reduce Debt

Debt is never fun. 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 make you feel like you are drowning, but in this post banking enquiry, you can push back the banks and offer a reasonable alternative to repay debt on more favourable terms. The banks are obligated to give consideration to your proposal and these are legitimate ways to reduce debt.

If you feel your debt situation is out of control, it’s important to get advice on how you can turn things around. There is always a way out, you just need to get the correct plan of action.

Ask Just Budget For Help Today!

Our goal is to provide assistance to Australians facing financial uncertainty during the current global crisis. We are in this together.

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